E1 3) Suppose that the firm you are working for has given you the following table (K is the level ofcapital, and L is the level of labor employed by the firm; Q is the output produced by the firm; P isthe price of the product the firm is producing; wage is the unit cost of labor):KL Q10 12 21010 14 2501016 2801018 30010 20 310MPLAPLP55555a)Complete the table.b) What will be the cost minimizing input combination for the firm?c) How much output will the firm produce?d) Find out the marginal product and average product of labor at this level of output?Wage5050505050

The marginal product of labor (MPL) measures the change in output due to a change in quantity,…

Suppose that the firm you are working for has given you the following table (K is the level of capital, and L is the level of labor employed by the firm; Q is the output produced by the firm; P is the price of the product the firm is producing; wage is the unit cost of labor): K L Q 10 12 210 MPL APL P 5 - Wage 50

Suppose that the firm you are working for has given you the following table (K is the level of capital, and L is the level of labor employed by the firm; Q is the output produced by the firm; P is the price of the product the firm is producing; wage is the unit cost of labor): K L Q 10 12 210 MPL APL P 5 - Wage 50

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Q = 4L + 8K Q = 50K04L0.6 Q = [K0510.5]3 i) Calculate the marginal products of labor and capital
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True or false and explain Suppose a firm’s marginal product of labour is MPL = 10/L, where L is measured in labour hours, the price of the product is $600, and the cost per hour of labour is $30. The firm currently employs 150 labour hours. In order to maximize the firm’s profits in the short run, the manager should increase its labour employment by 40 labour hours.