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Consider the production function Q = 20K1/2L1/2. The firm operates in the short run with 20 units of capital.  a. The firm’s short-run production function is Q = ______________. b. The average product of labor function is AP = _____________. c. The marginal product of labor function is MP = ____________. Now, let the wage be ₱500.00. d. Derive AVC(Q). e. When 160 units are produced, _____________ units of labor are employed, and the average product is ____________. Average variable cost is ₱___________. f. Derive SMC(Q). ANSWER ONLY  D, E ,F

Consider the production function Q = 20K1/2L1/2. The firm operates in the short run with 20 units of capital.  a. The firm’s short-run production function is Q = ______________. b. The average product of labor function is AP = _____________. c. The marginal product of labor function is MP = ____________. Now, let the wage be ₱500.00. d. Derive AVC(Q). e. When 160 units are produced, _____________ units of labor are employed, and the average product is ____________. Average variable cost is ₱___________. f. Derive SMC(Q). ANSWER ONLY  D, E ,F

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
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 5E
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Consider the production function Q = 20K1/2L1/2. The firm operates in the short run with 20 units of capital. 
a. The firm’s short-run production function is Q = ______________.
b. The average product of labor function is AP = _____________.
c. The marginal product of labor function is MP = ____________.
Now, let the wage be ₱500.00.
d. Derive AVC(Q).
e. When 160 units are produced, _____________ units of labor are employed, and the average
product is ____________. Average variable cost is ₱___________.
f. Derive SMC(Q).

ANSWER ONLY  D, E ,F

 

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