Suppose that the Cobb-Douglas production function is q = L0.75K0.25. a. What is the average product of
Question:
a. What is the average product of labor, holding capital fixed?
b. What is the marginal product of labor?
c. What are the APL and MPL when K̅ = 16?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 68% (16 reviews)
The production function is q L 075 K 025 a As a res...View the full answer
Answered By
Susan Juma
I'm available and reachable 24/7. I have high experience in helping students with their assignments, proposals, and dissertations. Most importantly, I'm a professional accountant and I can handle all kinds of accounting and finance problems.
4.40+
15+ Reviews
45+ Question Solved
Related Book For
Microeconomics Theory and Applications with Calculus
ISBN: 978-0133019933
3rd edition
Authors: Jeffrey M. Perloff
Question Posted:
Students also viewed these Economics questions
-
Suppose that the production function is q = L0.75 K0.25. a. What is the average product of labor, holding capital fixed at K? b. What is the marginal product of labor? c. How is the marginal product...
-
Your engineering department estimated the following production function. Q = 15L2 0.5L3 a. What is the marginal product of labor function, MPL? b. What is the average product of labor function, APL?...
-
A firm can manufacture a product according to the production function Q = F(K, L) = K3/4 L 1/4 a. Calculate the average product of labor, APL, when the level of capital is fixed at 16 units and the...
-
Comment on the following statement: A financial projection presents an organizations expected results, given a hypothetical assumption.
-
A 1-m3 uninsulated tank contains air at 1 MPa, 560 K. The tank is now discharged through a small convergent nozzle to the atmosphere at 100 kPa while heat transfer from some source keeps the air...
-
Why do economists place such importance on the role of expectations in macroeconomic policy?
-
Construct a relative frequency histogram using the frequency distribution in Exercise 17. Then determine which class has the greatest relative frequency and which has the least relative frequency....
-
Harrington asks his assistant to collect details on those costs included in the $ 25,000 indirect-cost pool that can be traced to each individual job. After analysis, Bradley is able to reclassify $...
-
What advancements in supramolecular chemistry have been instrumental in developing new classes of organocatalysts, and how do these developments influence catalytic efficiency and chiral induction ?
-
Data table Beg. Bal. Feb. 6 Feb. 15 Feb. 23 Feb. 28 End. Bal. Beverly Associates 14 W Gadsden St Pensacola, FL 32501 BANK OF TOMORROW 123 PETER PAN RD, KISSIMMEE, FL 34747 DEPOSITS Deposit Deposit...
-
In the short run, a firm cannot vary its capital, K = 2, but it can vary its labor, L. It produces output q. Explain why the firm will or will not experience diminishing marginal returns to labor in...
-
If the Cobb-Douglas production function is q = L0. 75 K0 .25 , and K = 16, what is the elasticity of output with respect to labor?
-
You have $250,000 to invest in a stock portfolio. Your choices are Stock H, with an expected return of 13.5 percent, and Stock L, with an expected return of 9.8 percent. If your goal is to create a...
-
Question 3 of 7 Suppose Canadian home-owners owe an average of $180,000 on their mortgages. Assume that mortgage debt is normally distributed in Canada with a standard deviation of $84,000. Standard...
-
How can I develop a 3-year revenue forecast associated with each of these strategic alternative? Can you show the example of one of the strategic alternatives (These are my POVs for strategic...
-
What are Public Company Accounting Oversight Board (PCAOB) inspections? Refer to the graph labeled "Inside the Audits." Describe the information you see presented there. According to former PCAOB...
-
Giving someone a few minutes of your time at work to discuss a non-work issue achieves what function?
-
10.4. Solution of the Black-Scholes PDE. Use the Gaussian integration by parts for- mula E[F'(Z)] = E[ZF(Z)], where Z is a standard Gaussian variable, to prove that the function f(t, x) in equa- tion...
-
The Lighting division of St. Johns Office Furniture needs 1,200 units of a leaded-glass lamp shade from the Fabricating division. The company has a policy of negotiated transfer prices. The...
-
On August 31, 2012, the balances of the accounts appearing in the ledger of Wood Interiors Company, a furniture wholesaler, are as follows:Prepare the August 31, 2012, closing entries for Wood...
-
In Question 4.2, what transfer price would maximize the profit of TMX Philippines?
-
In Question 4.2 suppose that the Philippines has a lower corporate tax rate than the United States. How would that lower tax rate affect the transfer price that maximizes the overall profit of the...
-
Outsourcing of services by American firms has contributed significantly to wage growth in India. Explain why using a graph of the Indian labor market.
-
6. Consider the following algorithm. Give a function with one term and coefficient 1 g(n) such that the running time of this algorithm is (g(n)), and briefly explain. public static int funkySum...
-
In the diagram, let U = {all objects}, B = {all students who live in Hartford}, = {students majoring in math}, and R = {students taking a course with Professor Antonio} B M 1 2 3 5 + 6 7 8 R In which...
-
Risk Identification: Disruption Disruption Assessment: Assessment: Risk Risk Probability Risk 1: Cyberwarfare 1 Consequence 5 Risk 2: Natural 1 5 Diaster Risk 3: Supplier 2 2 closure Risk 4:...
Study smarter with the SolutionInn App