A computer assembly firm’s production function is q = 0.1L (K) + 3L (2 K) - 0.1L (3 K). a) What is its short-run production function if capital is fixed at K = 10? b) Give the formulas for its marginal product of labor and its average product of labor

A computer assembly firm’s production function is q = 0.1L (K) + 3L (2 K) - 0.1L (3 K). a) What is its short-run production function if capital is fixed at K = 10? b) Give the formulas for its marginal product of labor and its average product of labor

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Proudction Costs

Section: Chapter Questions

Problem 2SQ

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Concept explainers

Isocost and Isoprofit Curve Analysis

An isocost curve in the production theory that is a crucial part of economics depicts different combinations of factor inputs at a given market cost. In other words, this shows all the combinations of production factors that cost the same for the firm to employ. Usually, this can be depicted as a downward sloping straight line when the firms act as the price-takers in the factor markets. The slope of this mainly depicts the relative prices of different production factors.

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Q3) A computer assembly firm’s production function is q = 0.1L (K) + 3L (2 K) - 0.1L (3 K). a) What is its short-run production function if capital is fixed at K = 10? b) Give the formulas for its marginal product of labor and its average product of labor.

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