(b) The production funeaTor laptops of Patel is given by q = 10K° L°S where is number of laptops produced per day, K is hours of machine time and L is labour hours. Patel's competitor Manish is using the production function q = 10K L4 %3D If both companies use the same amount of capital and labor, which will generate more output? (i) Assume that capital is limited to 9 machine hours, but labour is unlimited in supply. In which company is the marginal product of labor greater? Explain. (ii)
(b) The production funeaTor laptops of Patel is given by q = 10K° L°S where is number of laptops produced per day, K is hours of machine time and L is labour hours. Patel's competitor Manish is using the production function q = 10K L4 %3D If both companies use the same amount of capital and labor, which will generate more output? (i) Assume that capital is limited to 9 machine hours, but labour is unlimited in supply. In which company is the marginal product of labor greater? Explain. (ii)
Chapter9: Production Functions
Section: Chapter Questions
Problem 9.8P
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Question
![(b)- The production funeaKTor laptops of Patel is given by q = 10K°5 L°S
where q is number of laptops produced per day, K is hours of machine time and
L is labour hours. Patel's competitor Manish is using the production function
q = 10K L4.
(i)
If both companies use the same amount of capital and labor, which will
generate more output?
(i1)
Assume that capital is limited to 9 machine hours, but labour is unlimited
in supply. In which company is the marginal product of labor greater?
Explain.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2ea110f9-8ff0-4eaf-8da3-9e4a2ae0e39d%2Ff34ff5f9-884a-4575-9343-cc23cb18c3d8%2Frne44lg_processed.jpeg&w=3840&q=75)
Transcribed Image Text:(b)- The production funeaKTor laptops of Patel is given by q = 10K°5 L°S
where q is number of laptops produced per day, K is hours of machine time and
L is labour hours. Patel's competitor Manish is using the production function
q = 10K L4.
(i)
If both companies use the same amount of capital and labor, which will
generate more output?
(i1)
Assume that capital is limited to 9 machine hours, but labour is unlimited
in supply. In which company is the marginal product of labor greater?
Explain.
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