Typed and correct answer please. I ll rate A manufacturer estimates that the annual output at a certain factory is given byQ(K, L) = 40KL0.2 units, where K is the capital expenditure in thousands of dollars and L is0.8the size of the labor force in worker-hours. Suppose that the current capital expenditure is$300000 and the labor level is 560 worker-hours.a. Find the current marginal productivity of capital Qk -ANSWER:b. Find the current marginal productivity of labor QL.ANSWER:c. Should the manufacturer consider adding a unit of capital or a unit of labor in order to increaseoutput more quickly?OA. capitalB. labor

Given that, Q(K,L) = 40K0.8L0.2 Here k is the capital expenditure in thousands of dollars and L is…

A manufacturer estimates that the annual output at a certain factory is given by K,L) = 40K0.8L0.2 units, where K is the capital expenditure in thousands of dollars a size of the labor force in worker-hours. Suppose that the current capital expenditure is 0000 and the labor level is 560 worker-hours. ind the current marginal productivity of capital QK- SWER: ind the current marginal productivity of labor QL. SWER: hould the manufacturer consider adding a unit of canital or a unit of labor in order to ir

A manufacturer estimates that the annual output at a certain factory is given by K,L) = 40K0.8L0.2 units, where K is the capital expenditure in thousands of dollars a size of the labor force in worker-hours. Suppose that the current capital expenditure is 0000 and the labor level is 560 worker-hours. ind the current marginal productivity of capital QK- SWER: ind the current marginal productivity of labor QL. SWER: hould the manufacturer consider adding a unit of canital or a unit of labor in order to ir

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter7: Production Economics

Section: Chapter Questions

Problem 7E

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Suppose the production function for widgets is given by q=KL+6L²-0.1L³ where q represents the annual quantity of widgets produced, K represents annual capital input and L represents annual labor input. A) Suppose K=10. At what level of labor input does average product of labor reach a maxiumum? How many widgets are produced at that point? B) Again assuming that K=10, at what level of labor input does MPL=0? C)Determine and show whether the production process exhibits law of diminishing returns.
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Show using math and logic that for constant returns to scale production functions, MRTS between labor and capital depends only on the K/L ratio, and not the scale of production.