Suppose labour and capital are perfectly substitutable at a 2:1 rate, in such a way that 2 units of labor or 1 unit of c...
Suppose labour and capital are perfectly substitutable at a 2:1 rate, in such a way that 2 units of labor or 1 unit of capital can produce 2 units of output. What would be the equation for the production function? What is the average and marginal product of labor in this case?
Homework Answers
From the given information , we get the equation:
Total product ,Q = L +2K
Average product , Q/L = (L+2K)/ L = 1+2K/L
Marginal product of labor , dQ/dL = 1
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Suppose labour and capital are perfectly substitutable at a 2:1 rate, in such a way that 2 units of labor or 1 unit of c...
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Please show all work. Problem #3: Long-Run Labor Demand and Factor Substitutability Suppose there are two...
Please show all work.
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Please show all work. Problem #3: Long-Run Labor Demand and Factor Substitutability Suppose there are two...
Please show all work.
Problem #3: Long-Run Labor Demand and Factor Substitutability Suppose there are two inputs in the production function, labor (L) and capital (K), which carn be combined to produce Y units of output according to the following production function: Y = 30K + 10L The firm wants to produce 600 units of output. 1. Draw the isoquant that corresponds to that level of production (600 units) in a graph that has L on the horizontal axis and...
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Problem #3: Long-Run Labor Dernand and Factor Substitutability Suppose there are two inputs in the production function, labor (L) and capital (K), which can be combined to produe Y units of output according to the following production function Y = 30K + 10L The firm wants to produce 600 units of output 1. Draw the ot that corresponds to that level of production (600 units) in a graph that has L on the horizontal axis and K on the vertical...
Please show all work.
Problem #3: Long-Run Labor Demand and Factor Substitutability Suppose there are two inputs in the production function, labor (L) and capital (K), which carn be combined to produce Y units of output according to the following production function: Y = 30K + 10L The firm wants to produce 600 units of output. 1. Draw the isoquant that corresponds to that level of production (600 units) in a graph that has L on the horizontal axis and...
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Please show all work.
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