Question

Assume total productivity is given by Q=50L + 6.5L2 -0.25L3

Sketch a graph of the total productivity function, indicating the maximum and number of workers to hire.

In excel, create the necessary columns to eventually determine the number of labor (L) hours to hire in order to maximize quantity using this same data.

Graph the total productivity function, export to word, and provide a managerial summary of the graph.

Answer 1

Answer:

Given, the total productivity is given by Q=50L + 6.5L² -0.25L³

Using the function, we get

Labour L) 0 Total Productivity 0) 10 11 12 13 | 124 202 288 381 480 583 688 794 900 1004 1104 1199 1288 1369 1440 1500 1548 1582 1600 1601 1584 1547 1488 15 16 17 18 20 22 25 1406

And the graph of total productivity curve is given below,

Total Productivity Function 1800 1600 1400 Total Productivity 5 25 30 10 15 20 Number of Labour

Managerial Summary:

The total productivity increases for each additional number of labor employed. When the L=21, total productivity is maximum, i.e. 1601. But after that for each additional labor total productivity falls. Thus, its better for the producer to employ 21 labor to get maximum productivity.