Consider a firm whose production function is f(L,K)=ALaKb. Denote by APL(L,K)=f(L,K)/L the so-called average product of labor (here f is the production function of the firm). For which values of A, L,K, a, and b is the Average Product of Labor for this company equal to the Marginal Product of Labor? a=1 and any values of b, L, and K. a+b>1, a<1, and any values of b, L, and K. a=1/2, b=1/2, L=1, and K=3. a+b<1, a>0, b>0, and any values of L and K. a+b=1, b>0, and any values of L and K.
Consider a firm whose production function is f(L,K)=ALaKb. Denote by APL(L,K)=f(L,K)/L the so-called average product of labor (here f is the production function of the firm). For which values of A, L,K, a, and b is the Average Product of Labor for this company equal to the Marginal Product of Labor? a=1 and any values of b, L, and K. a+b>1, a<1, and any values of b, L, and K. a=1/2, b=1/2, L=1, and K=3. a+b<1, a>0, b>0, and any values of L and K. a+b=1, b>0, and any values of L and K.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Consider a firm whose production function is f(L,K)=ALaKb. Denote by APL(L,K)=f(L,K)/L the so-called average product of labor (here f is the production function of the firm). For which values of A, L,K, a, and b is the Average Product of Labor for this company equal to the Marginal Product of Labor?
a=1 and any values of b, L, and K.
a+b>1, a<1, and any values of b, L, and K.
a=1/2, b=1/2, L=1, and K=3.
a+b<1, a>0, b>0, and any values of L and K.
a+b=1, b>0, and any values of L and K.
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