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Production Function Assignment | Homework For You

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December 11th, 2019

Suppose the production function for widgets is given by: Q = KL – 0.8K2 – 0.2L2 where Q represents the quantity of widgets produced, K represents the annual capital input and L represents annual labor input.

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Homework For You

(a) For K = 10, what is the average productivity of labor equal to?

(b) At what level of labor input does this average productivity reach a maximum? How many widgets are produced at this point?

(c) Again assuming that K = 10, what is the marginal product of labor equal to?

(d) Graph the APL and MPL curves. Get Economics homework help today

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