Q1: (10 points) Let Q(L) = 6L2 - (L3)/6 with costs = 300 + 100L. a) Complete the table on the next page. You can do in excel. b) Why is L = 25 or larger not something we should consider? c) Confirm that APL is maximized where MPL = APL. (You can plot APL and MPL versus L. Or you can use the table directly. Find the maximum APL. For labour below this we should see MPL > APL. For labour above we should see MPL

TABLE: Column 1: Labour input from 1-24 Column 2: Output resulting from L: Q (L) = 6L2 - (L3) /6 Column 3: Average Product of Labour API II Q/L Column 4: Marginal Product of Labour: MP 4Q/AL Column 5: Cost: COST 300 + 100L II II Column 6: Average Cost: AC COST/Q Column 7: Average Cost: AVC (COST-300)/Q Column 8: Marginal Cost: MC AC/AQ 3 4 5 6 7 8 IN L AP MP COST AC AVC MC 0 300 1 2 A W 5 7 8 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24