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A firm can manufacture a product according to the production function Q = F(K, L) = KO.50LO.50. (a) What is the average product of labor, APL, when the level of capital is fixed at 64 units and the firm uses 9 units of labor? (b)What is the marginal product of labor, MPL, when the amount of capital is fixed at 81 units?

A firm can manufacture a product according to the production function Q = F(K, L) = KO.50LO.50. (a) What is the average product of labor, APL, when the level of capital is fixed at 64 units and the firm uses 9 units of labor? (b)What is the marginal product of labor, MPL, when the amount of capital is fixed at 81 units?

ECON MICRO
ECON MICRO
5th Edition
ISBN:9781337000536
Author:William A. McEachern
Publisher:William A. McEachern
Chapter7: Production And Cost In The Firm
Section: Chapter Questions
Problem 3.8P
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A firm can manufacture a product according to the production function Q = F(K, L) = KO.50LO.50. (a) What is the average product of labor, APL, when the level of capital is fixed at 64 units and the firm uses 9 units of labor? (b)What is the marginal product of labor, MPL, when the amount of capital is fixed at 81 units? (c) Suppose capital is fixed at 64 units. If the firm can sell its output at a price of $100 per unit of output and can hire labor at $50 per unit of labor, how many units of labor should the firm hire in order to maximize profits?
Transcribed Image Text:A firm can manufacture a product according to the production function Q = F(K, L) = KO.50LO.50. (a) What is the average product of labor, APL, when the level of capital is fixed at 64 units and the firm uses 9 units of labor? (b)What is the marginal product of labor, MPL, when the amount of capital is fixed at 81 units? (c) Suppose capital is fixed at 64 units. If the firm can sell its output at a price of $100 per unit of output and can hire labor at $50 per unit of labor, how many units of labor should the firm hire in order to maximize profits?
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