Consider Urban Artisans, LLC. It has a workshop with 2 machineries that operate 8 hours per day (K=2). Also, it currently employs 5 artisans that also work for 8 hours per day (L=5) and get paid $30 per hour (W=30). The workshop manager is considering an increase in the number of artisans. In fact, she is thinking of increasing the number of employees that work in the workshop to, perhaps, 9 artisans. To help her make a decision, we are going to rely on a recent estimate of their production function: Q=4.5*K0.8*L0.2. We also use the vectors below, describing the short-run variations in labor input: KL26272829 Compute the total product (Q) when K=2 while L varies between 6, 7, 8, and 9. What is the total output when K=2 and L=9? Compute the marginal product of labor (MPL) when K=2 while L varies between 6, 7, 8, and 9. What is the marginal product of labor when K=2 and L=9?
Please no written by hand solutions
Consider Urban Artisans, LLC. It has a workshop with 2 machineries that operate 8 hours per day (K=2). Also, it currently employs 5 artisans that also work for 8 hours per day (L=5) and get paid $30 per hour (W=30).
The workshop manager is considering an increase in the number of artisans. In fact, she is thinking of increasing the number of employees that work in the workshop to, perhaps, 9 artisans. To help her make a decision, we are going to rely on a recent estimate of their production function: Q=4.5*K0.8*L0.2. We also use the vectors below, describing the short-run variations in labor input:
KL26272829
Compute the total product (Q) when K=2 while L varies between 6, 7, 8, and 9. What is the total output when K=2 and L=9?
Compute the marginal product of labor (MPL) when K=2 while L varies between 6, 7, 8, and 9. What is the marginal product of labor when K=2 and L=9?
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
