A car wash firm calculates that its daily production (in numbers of cars washed) depends on the number of n workers it employs according to the formula P=30n-0.05n^2 cars.(a) Calculate the marginal product of labor at employment level of 50 workers. ___ cars/workers.Interpret the results. This means that, at an employment level of 50 workers, the firm’s daily production will increase at a rate of ____ cars per additional worker it hires. A car wash firm calculates that its daily production (in number of cars washed) depends on the number n of workers it employs according to the formulaP = 30n - 0.05n2 cars.Calculate the marginal product of labor at an employment level of 50 workers. HINT [See Example 3.]cars/workerInterpret the result.This means that, at an employment level of 50 workers, the firm's daily production will increase at a rate ofcars per additional worker it hires.Need Help?Read It

The factors of production are the inputs that are used in the production process of a particular…

A car wash firm calculates that its daily production (in number of cars washed) depends on the number n of workers it employs according to the formula P = 30n - 0.05n2 cars. Calculate the marginal product of labor at an employment level of 50 workers. HINT [See Example 3.] cars/worker Interpret the result. cars per additional worker it hires. This means that, at an employment level of 50 workers, the firm's daily production will increase at a rate of

A car wash firm calculates that its daily production (in number of cars washed) depends on the number n of workers it employs according to the formula P = 30n - 0.05n2 cars. Calculate the marginal product of labor at an employment level of 50 workers. HINT [See Example 3.] cars/worker Interpret the result. cars per additional worker it hires. This means that, at an employment level of 50 workers, the firm's daily production will increase at a rate of

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter11: Profit Maximization

Section: Chapter Questions

Problem 11.14P

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Question 2: Consider the following production function that depends only on labor:Q = 2L+6L² - 3L³ 1. Compute the APL (average product of labor). 2. Compute the MPL (marginal product of labor). 3. What is the value of L* at which APL is the highest? 4. For L > L*, which one is bigger, APL or MPL? How about when I < L* and L = L* ? 5. Draw APL and MPL on the y-axis as a function of L on the x-axis. Label the point of the intersection of APL and MPL.
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