i) A Producer is experiencing the Production function Q-50L 5K0.5. Given that the Price of K...

 

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i) A Producer is experiencing the Production function Q-50L 5K0.5. Given that the Price of K is 4 and that of L is 5. The Producer is currently producing 300 output using the factor combination K-15 and L-6. Is this an efficient Combination? ii) Determine the returns to scale for the following production functions Q = 2K + 3L, Q-0.5KL, and Q=K03L0.2 (b) In the short run production function of a company, output (Q) is the function of one variable input labour (L) and is given by the following relationship. Q=650L²-150L³ Find (i) Labour unit to be employed corresponding to the point of inflexion. (ii) Labour unit beyond which Marginal Product of labour (MPL) remains less than the Average Product of labour (APL). (iii) Labour unit employed when Total Product of labour (TPL) is maximum. (iv) If the producer is employing 5 units of labour, what will happen to MPL? i) A Producer is experiencing the Production function Q-50L 5K0.5. Given that the Price of K is 4 and that of L is 5. The Producer is currently producing 300 output using the factor combination K-15 and L-6. Is this an efficient Combination? ii) Determine the returns to scale for the following production functions Q = 2K + 3L, Q-0.5KL, and Q=K03L0.2 (b) In the short run production function of a company, output (Q) is the function of one variable input labour (L) and is given by the following relationship. Q=650L²-150L³ Find (i) Labour unit to be employed corresponding to the point of inflexion. (ii) Labour unit beyond which Marginal Product of labour (MPL) remains less than the Average Product of labour (APL). (iii) Labour unit employed when Total Product of labour (TPL) is maximum. (iv) If the producer is employing 5 units of labour, what will happen to MPL?

Answer rating: 100% (QA)

i Yes this is an efficient combination We can calculate the total cost of the production to f... View the full answer