The production function of a small firm that produces t-shirts is given by the table below . 10 12 14 16 18 20 22 24 18 33 57 72 84 93 99 102 102 99 For each L, solve for AP and MP. Round-up vour answers to two decimals: Represent VOur answers On table: No need to show the solutions. BJ What would be the ou
The production function of a small firm that produces t-shirts is given by the table below . 10 12 14 16 18 20 22 24 18 33 57 72 84 93 99 102 102 99 For each L, solve for AP and MP. Round-up vour answers to two decimals: Represent VOur answers On table: No need to show the solutions. BJ What would be the ou
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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'The production function of a small firm that produces t-shirts is given by the table below . 10 12 14 16 18 20 22 24 18 33 57 72 84 93 99 102 102 99 For each L, solve for AP and MP. Round-up vour answers to two decimals: Represent VOur answers On table: No need to show the solutions. BJ What would be the output elasticities of labor? Round-Up vour answers t0 twO decimals. If the firm is hiring 16 and 12 workers, interpret the computed € values C Identify the range of number of laborers under increasing marginal returns diminishing marginal returns, and negative marginal returns. D Explain why the firm experiences diminishing marginal returns. EJ If the firm sells each t-shirt for P75 and each worker receives wage of PA5O per day. what is the optimal number of laborers t0 hire to maximize profits?'
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