1c. Solve for the average product per worker (q/L) in terms of q when the firm uses 8 units of capital (K=8). q = 8L - 0.6(8)2 - 0.212 Divide by L: q/L = 8L/L - 0.6(8)2/L - 0.2L3/L q/L = 8 -38/L - 0.2L ww.coursehero.com/file/22063429/Extra-Prob-for-Test-2/ 1d. Calculate the minimum number of workers that the Coffee Shop will need to produce at least one cup of coffee per hour with K=8? With L=5 workers q = 8(5) - 38.4 - 0.2(5)2 = 40 -38.4 -5 = -3.4 which means no coffee would be produced with L=5 workers and K=8. The Coffee shop must use a minimum of L=6 workers to get a positive output of coffee q=2.4 with q = 8(6) - 38.4 - 0.2(6)2 q = 48 - 38.4 -7.2 g = 2.4la. Calculate the number of cups of coffee per hour when (i) L=10 and K=10 and (ii) L=20 and K=20. la. Explain and show if the production function for coffee has constant, increasing or decreasing returns to scale. Set K=10 and L=10 q = (10)(10) - 0.6*10*10 - 0.2*10*10 = 100 - 60 - 20 = 20 rce was Hero.com Set K=20 and L=20 q = (20)(20) - 0.6*20*20 - 0.2*20*20 = 400 - 240 - 80 U = 80 C arseH Labor (L) Capital (K) Output q 10 10 20 20 20 80