Question: Given the production functions, (i) Q = 20L-L, (ii) Q = 225L - L: (a) Find an expression for MPL. Show that MP decreases

Given the production functions, (i) Q = 20L-L, (ii) Q = 225L

Given the production functions, (i) Q = 20L-L, (ii) Q = 225L - L: (a) Find an expression for MPL. Show that MP decreases indefinitely as labour input, L, increases (i.e., the law of diminishing returns applies). (b) Find an expression for APL. (c) Plot MPL and APL. State the relationship between them.

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MPL dQ d L APL Q L Explanation a iMPLd20LL2dL MPL 20 2L Now dMP... View full answer

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