Question 2 A firm's short-run production function is given by Q=L(11 + L L²) where L is units of labour (not necessarily an integer, but is non-negative) (a) Find the size of the workforce (L) that maximises the output. Prove that this is a maximum. (b) The Average Product of Labour (APL) is the defined as AP, maximises AP₁. = (c) The Marginal Product of Labour (MP) is the defined as MPL is at its maximum. = Find the size of the workforce that dL Verify that MP₁ = AP₁ when AP₁

Question 2 A firm's short-run production function is given by Q=L(11 + L L²) where L is units of labour (not necessarily an integer, but is non-negative) (a) Find the size of the workforce (L) that maximises the output. Prove that this is a maximum. (b) The Average Product of Labour (APL) is the defined as AP, maximises AP₁. = (c) The Marginal Product of Labour (MP) is the defined as MPL is at its maximum. = Find the size of the workforce that dL Verify that MP₁ = AP₁ when AP₁

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter11: Profit Maximization

Section: Chapter Questions

Problem 11.14P

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