In the short-run, we assume that capital is a fixed input and labor is a variable...

Transcribed Image Text:

In the short-run, we assume that capital is a fixed input and labor is a variable input, so the firm can increase output only by increasing the amount of labor it uses. In the short-run, the firm's production function is q = f(L, K), where q is output, L is workers, and K is the fixed number of units of capital. Labor (L) 0 2 Production Output (q) 0 337 4 699 6 A specific equation for the production function is given by: 8 1,429 10 12 2,064 q = 8LK + 5L - or, when K = 20, q = (8L x 20)+5L - (3) L Use this equation to generate the values for output and fill in the table to the right. (Round your answers to the nearest integer.) In the short-run, we assume that capital is a fixed input and labor is a variable input, so the firm can increase output only by increasing the amount of labor it uses. In the short-run, the firm's production function is q = f(L, K), where q is output, L is workers, and K is the fixed number of units of capital. Labor (L) 0 2 Production Output (q) 0 337 4 699 6 A specific equation for the production function is given by: 8 1,429 10 12 2,064 q = 8LK + 5L - or, when K = 20, q = (8L x 20)+5L - (3) L Use this equation to generate the values for output and fill in the table to the right. (Round your answers to the nearest integer.)