production function is q = f(L, K), where q is output, L is workers, and K is the fixed number of units of capital. A specific equation for the production function is given by: or, when K = 20, q = 8KL + 5L² - (3) ₁³. - (13) ₁³. The level of output q for 10 units of labor input is (enter your response rounded up to two decimal places). The average productivity of these 6 units of labor is (enter your response rounded up to two decimal places). The marginal productivity of using one more unit of labor input is (enter your response rounded up to two decimal places). Given the relationship between the average productivity and the marginal productivity, the average productivity of labor is q= (8x20xL) + 5L².
production function is q = f(L, K), where q is output, L is workers, and K is the fixed number of units of capital. A specific equation for the production function is given by: or, when K = 20, q = 8KL + 5L² - (3) ₁³. - (13) ₁³. The level of output q for 10 units of labor input is (enter your response rounded up to two decimal places). The average productivity of these 6 units of labor is (enter your response rounded up to two decimal places). The marginal productivity of using one more unit of labor input is (enter your response rounded up to two decimal places). Given the relationship between the average productivity and the marginal productivity, the average productivity of labor is q= (8x20xL) + 5L².
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 7E
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Transcribed Image Text:In the short run, we assume that capital is a fixed input and labor is a variable input, so the firm can increase output only by increasing the amount of labor it uses. In the short-run, the firm's
production function is q
=
f(L,K), where q is output, L is workers, and K is the fixed number of units of capital.
A specific equation for the production function is given by:
or, when K = 20,
q 8KL+ 5L²
=
q = (8×20×L) + 5L²
The level of output q for 10 units of labor input is (enter your response rounded up to two decimal places).
The average productivity of these 6 units of labor is (enter your response rounded up to two decimal places).
The marginal productivity of using one more unit of labor input is (enter your response rounded up to two decimal places).
Given the relationship between the average productivity and the marginal productivity, the average productivity of labor is
3
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