Imagine that the production function for tuna cans is given by q = 6K + 4L Where

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Imagine that the production function for tuna cans is given by

q = 6K + 4L

Where

q = Output of tuna cans per hour

K = Capital input per hour

L = Labor input per hour

a. Assuming capital is fixed at K = 6, how much L is required to produce 60 tuna cans per hour? To produce 100 per hour?

b. Now assume that capital input is fixed at K = 8; what L is required to produce 60 tuna cans per hour? To produce 100 per hour?

c. Graph the q = 60 and q = 100 is oquants. Indicate the points found in part a and part b. What is the RTS along the is oquants?


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Related Book For  book-img-for-question

Intermediate Microeconomics and Its Application

ISBN: 978-0324599107

11th edition

Authors: walter nicholson, christopher snyder

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