5. This is the sequel to a question on the previous P-set that used this aggregate production function Y = A x VK x VL For this entire problem assume A = 2. Fill in the table below showing the marginal product of labor (MPL) for each level of capital and labor. MPL when K = 3 MPL when K = 5 4 7 What is the MPL when K = 3 and L = 7?

5. This is the sequel to a question on the previous P-set that used this aggregate production function Y = A x VK x VL For this entire problem assume A = 2. Fill in the table below showing the marginal product of labor (MPL) for each level of capital and labor. MPL when K = 3 MPL when K = 5 4 7 What is the MPL when K = 3 and L = 7?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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help! rate will be given! write the solutions legibly and correctly. ECONOMICS
1. Is it possible to obtain increasing returns to scale if all factors of production are subject to diminishing marginal productivity?
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Why are the MC and MP inversely related to one another? While it is because as one increases, the other decreases, please explain the meaning behind the inverse relationship that exists between worker productivity and cost, in general.
Given the linear production function: Log (Q) = Log (0.5) + Log (L) + Log (K) Where Q is the level of output, L is the units of labor and K is the units of capital employed. a. Transform the above expression from log linear form to Cobb Douglas form. b. Interpret the returns to scale concept of the Cobb Douglas function. c. What is the percentage increase in output if labor and capital increase by 20%?
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Suppose that the output Q (in units) of a certain company is Q = 75K¹/3-2/3, where K is the capital expenditures in thousands of dollars and L is the number of labor hours. Find aQ/ƏK when capital expenditures are $1,331,000 and the labor hours total 2197. (Round your answer to the nearest whole number.) aq/ək = units per thousand dollars Interpret aQ/ƏK. If labor hours remain at 2197 and K increases by $1000, Q will increase about units. Find aQ/aL when capital expenditures are $1,331,000 and the labor hours total 2197. (Round your answer to the nearest whole number.) ƏQ/ƏL = units per labor hour Interpret aQ/ƏL. If capital expenditures remain at $1,331,000 and L increases by one hour, Q will increase about units.
2. Suppose the production function for widgets is given by: f (K, L) 2* KL - K2/2- L2/2 Q 1 (a) Suppose L-5 (is fixed), derive an expression for and graph the total product of capital curve (the production function for a fixed level of labor) and the average productivity of capital curve. (b) At what level of capital input does the average productivity reach a maximum? How many widgets are produced at this point? (c) Again, assuming L=5, derive an expression for and graph the MPK curve. At what level of capital input does MPK =0? (d) Does this production function exhibit constant, increasing or decreasing returns to scale?
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Assume a Cobb-Douglas production function of the form: 3 What type of returns to scale does this production function exhibit? In this instance, returns to scale equal This production function exhibits q=10L0.28K0.59 (Enter a numeric response using a real number rounded to two decimal places.) OA. increasing returns to scale. OB. constant returns to scale. OC. initially decreasing but then constant returns to scale. O D. decreasing returns to scale. O E. initially constant but then decreasing returns to scale.
The aggregate production function is Y = 3KL. If there are 20 units of capital and 50 units of labor, what is aggregate output? Group of answer choices 600 1000 150 3000