Imagine that the production function for tuna cans is given by: q = 6K + 4L Where q = output of tuna cans per hour K = capital per hour L = labor input per hour. a. Assume capital is fixed at K = 6, how much L is required to produce 60 tuna cans per hour? b. Now assume capital is fixed at K = 8, how much L is required to produce 100 tuna cans per hour? c. Graph the q = 60 and q = 100 isoquants, in indicate the points found in parts a and b. d. What are the MP of capital and labor and What is the MRTS along the isoquants?

Imagine that the production function for tuna cans is given by: q = 6K + 4L Where q = output of tuna cans per hour K = capital per hour L = labor input per hour. a. Assume capital is fixed at K = 6, how much L is required to produce 60 tuna cans per hour? b. Now assume capital is fixed at K = 8, how much L is required to produce 100 tuna cans per hour? c. Graph the q = 60 and q = 100 isoquants, in indicate the points found in parts a and b. d. What are the MP of capital and labor and What is the MRTS along the isoquants?

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter9: Production Functions

Section: Chapter Questions

Problem 9.1P

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