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?
Microeconomics A Contemporary Intro
10th Edition
ISBN:9781285635101
Author:MCEACHERN
Publisher:MCEACHERN
Chapter7: Production And Cost In The Firm
Section: Chapter Questions
Problem 18PAE
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- 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?
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