Calculate the average product of labor, APL, when the level of capital is fixed a 81 units and the firm uses 16 units of labor. How does the average product of 1- change when the firm uses 256 units of labor? Find an expression for the marginal product of labor, MP, when the amount o fived at 81 units. Then, illustrate th inal product of labor d 1:
Calculate the average product of labor, APL, when the level of capital is fixed a 81 units and the firm uses 16 units of labor. How does the average product of 1- change when the firm uses 256 units of labor? Find an expression for the marginal product of labor, MP, when the amount o fived at 81 units. Then, illustrate th inal product of labor d 1:
Chapter11: Profit Maximization
Section: Chapter Questions
Problem 11.12P
Related questions
Question
![CONCEPTUAL AND COMPUTATIONAL QUESTIONS
1. A firm's analysts estimate that the firm can manufacture a product according to the pro-
duction function (LO1, LO2, LO5, L06)
m" pro-
union's
ng run,
an in-
ovides
won in
costly
stly ar-
ement
ng-run
Q = F(K, L) = K³41/4
a. Calculate the average product of labor, APL, when the level of capital is fixed at
81 units and the firm uses 16 units of labor. How does the average product of labor
change when the firm uses 256 units of labor?
b. Find an expression for the marginal product of labor. MP, when the amount of
capital is fixed at 81 units. Then, illustrate that the marginal product of labor depends
on the amount of labor hired by calculating the marginal product of labor for 16 and
81 units of labor.
c. Suppose capital is fixed at 81 units. If the firm can sell its output at a price of $200
per unit of output and can hire labor at $50 per unit of labor, how many units of labor
should the firm hire in order to maximize profits?
Mc
Graw
Hill
C](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd3ebebd1-1c80-4916-8a93-3be99d13258a%2F8e8359f3-f6a0-46c1-8da4-665a29dbbd07%2F5un18k9_processed.jpeg&w=3840&q=75)
Transcribed Image Text:CONCEPTUAL AND COMPUTATIONAL QUESTIONS
1. A firm's analysts estimate that the firm can manufacture a product according to the pro-
duction function (LO1, LO2, LO5, L06)
m" pro-
union's
ng run,
an in-
ovides
won in
costly
stly ar-
ement
ng-run
Q = F(K, L) = K³41/4
a. Calculate the average product of labor, APL, when the level of capital is fixed at
81 units and the firm uses 16 units of labor. How does the average product of labor
change when the firm uses 256 units of labor?
b. Find an expression for the marginal product of labor. MP, when the amount of
capital is fixed at 81 units. Then, illustrate that the marginal product of labor depends
on the amount of labor hired by calculating the marginal product of labor for 16 and
81 units of labor.
c. Suppose capital is fixed at 81 units. If the firm can sell its output at a price of $200
per unit of output and can hire labor at $50 per unit of labor, how many units of labor
should the firm hire in order to maximize profits?
Mc
Graw
Hill
C
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 5 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
![Micro Economics For Today](https://www.bartleby.com/isbn_cover_images/9781337613064/9781337613064_smallCoverImage.gif)
![Economics For Today](https://www.bartleby.com/isbn_cover_images/9781337613040/9781337613040_smallCoverImage.gif)
![Micro Economics For Today](https://www.bartleby.com/isbn_cover_images/9781337613064/9781337613064_smallCoverImage.gif)
![Economics For Today](https://www.bartleby.com/isbn_cover_images/9781337613040/9781337613040_smallCoverImage.gif)