Consider the production function Q = 6L^2 - L^3.
4. Consider the production function Q = 6L^2 - L^3.
a. Find average product. Find the number of labor (L) that the firm should hire to maximize average product.
b. Find marginal product. Find the number of labor (L) that the firm should hire to maximize marginal product.
c. Find the number of labor (L) that the firm should hire to maximize total product of labor.
d. Find the number of labor (L) that the firm has zero average product.
Homework Answers
Given Q= 6L2 - L3
a) APL= Q/L = 6L - L2
d.APl/dL = 6 - 2L
We put dAPL/dL = 0
So 6 - 2L = 0
So L = 3
b) MPL= 12L - 3L2
dMPl/dL = 12 - 6L
dMPl/dL = 0, 12-6L = 0
L = 2
c) TP= 6L2 - L3
dTP/dL = 12L - 3L2
dTP/dL= 0
So 12L - 3L2 = 0
So L= 4
d) AP = 6L - L2
AP = 0
6L - L2 = 0
L= 6
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