Question: (A) Is this production function a short-run or long-run production function? How can you tell? (B) Suppose that BBQ-Yee321 employs 5 units of capital and




(A) Is this production function a short-run or long-run production function? How can you tell? (B) Suppose that BBQ-Yee321 employs 5 units of capital and 2 workers. How many diners will be served? (C) Suppose that BBQ-Yee321 employs 5 units of capital and 2 workers, but the caterer Po is considering adding his h'iend Marcos to the payroll. What will the marginal product of Marcos be? (D) 0 When BBQ-Yee321 uses 1 unit of capital, what is the marginal product of the fth unit of labor? 0 When BBQ-Yee321 uses 5 unit of capital, what is the marginal product of the fth unit of labor? 0 Does this production function violate the law of diminishing marginal product of labor? Why or why not? (E) Suppose that BBQ-Yee321 employs 5 units of capital and 2 workers, but the caterer Po is oonsidering adding another meat smoker to the kitchen (which will raise the amount of capital input to 6 units). What will the marginal product of the smoker be? (F) BBQ-Yee321 employs 5 units of capital and 2 workers. P0 is considering the choice between hiring another worker or buying another smoker. If smokers cost $8 and workers $12, then at the margin, what is the most cost-effective choice for P0 to make? Labor (L) 2 3 4 5 6 53 85 108 127 143 158 2 105 153 188 217 242 263 Capital 3 146 208 253 290 321 349 (K) 4 183 256 310 353 390 423 5 216 300 361 410 453 491 6 246 340 408 463 511 553The table below represents the production function for BBQ-Yee321, a summer semester firm specializing in barbecued vegetables and meat. The numbers in the cells represent the number of customers that can be served with various combinations of labor and capital
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