Production managers for the Pottsville Hard Hat Corporation estimate their production function to be TP=30L +13.5L-L...

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Production managers for the Pottsville Hard Hat Corporation estimate their production function to be TP=30L +13.5L-L where TP is the number of hats and labour (L) is variable. Illustrate your answers using diagrams (a) What are the equations for MPL and AP? TP (b)At what level of input, does diminishing returns take place? (c)At what level of input, does AP peak? AP, AP (d) What is the maximum output that can be produced? (e) What amount of input is required to produce the maximum output? (f) If you hired 6 labour what is the maximum you would pay? (g) If the price of hats were $100 what would you be willing to pay for 6 labour? (h) What would you be willing to pay for 12 labour? L Production managers for the Pottsville Hard Hat Corporation estimate their production function to be TP=30L +13.5L-L where TP is the number of hats and labour (L) is variable. Illustrate your answers using diagrams (a) What are the equations for MPL and AP? TP (b)At what level of input, does diminishing returns take place? (c)At what level of input, does AP peak? AP, AP (d) What is the maximum output that can be produced? (e) What amount of input is required to produce the maximum output? (f) If you hired 6 labour what is the maximum you would pay? (g) If the price of hats were $100 what would you be willing to pay for 6 labour? (h) What would you be willing to pay for 12 labour? L

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Answer a To find the equation for marginal product of labor MPL we need to take the derivative of the production function with respect to labor L TP 3... View the full answer