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
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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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 ____________.
f. Derive SMC(Q).
ANSWER ONLY D, E ,F
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