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: Cengage Learning
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Question
Chapter 7, Problem 5E
a)
To determine
To find: The value of marginal product.
b)
To determine
To find: The value of average product function.
c)
To determine
To find: The value of L that maximize Q.
d)
To determine
To find: The value of L that maximize MP.
e)
To determine
To find: The value of L that maximize AP.
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Consider the following short-run production function (where L = variable input, Q = output):
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Chapter 7 Solutions
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
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Similar questions
- Q2) Consider the following production function TPL = 12L2 – 0.8L3 Determine the marginal product function(MPL) Determine the average product function (APL) Find the value of L that maximizes TPL Find the value of L that maximizes APL Find the value of L that maximizes MPLarrow_forwardA firm producing hockey sticks has a production function given by q = 2Vkl In the short run, the firm's amount of capital equipment is fixed at k = 100. The rental rate for k is r = 5, and the wage rate for r = $1, and the wage rate for l is w = $4. (a) Calculate the firm's short-run total cost curve. Calculate the short-run average cost curve. (b) What is the firm's short-run marginal cost function? What are the SC, SAC, and SMC for the firm if it produces 25 hockey sticks? Fifty hockey sticks? One hundred hockey sticks? Two hundred hockey sticks? (c) Graph the SAC and the SMC curves for the firm. Indicate the points found in part (b). (d) Where does the SMC curve intersect the SAC curve? Explain why the SMC curve will always intersect the SAC curve at its lowest point Suppose now that capital used for producing hockey sticks is fixed at ki in the short run. (e) Calculate the firm's total costs as a function of q, w, r, and k1. (f) Given q,w,and r, how should the capital stock be…arrow_forwardConsider the following short-run production function (where L = variable input, Q = output):Q = 6L2 - 0.4L3a. Determine the marginal product function (MPL).b. Determine the average product function (APL).c. Find the value of L that maximizes Q.d. Find the value of L at which the marginal product function takes on its maximum value.e. Find the value of L at which the average product function takes on its maximum value.arrow_forward
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