Question: Question 3 . ( 1 0 pts . ) A U . S . firm is considering to optimize its production. It's production function is
Question pts A US firm is considering to optimize its production. It's production function is q L K where q is the output, L is the number of labor, and K is the number of capital employed. The prices of labor and capital are w and r
a If the firm has a fixed amount of capital mathrmK what is its marginal product of labor? Does the firm have a diminishing marginal product of labor? Explain why or why not. pts
b If the firm has a fixed amount of capital mathrmK what is the average product of labor? Draw both the marginal product of labor and the average product of labor on one graph. pts
c If the firm's fixed amount of capital increases to from how does the firm's marginal product of labor change for its text th worker? How would you justify the economics behind the changing or constant marginal product of labor in response to the changing level of capital? pts
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