Question: Suppose a production function F(L,K) = Q = L1/3K1/3 where L represents the variable input labour, K = 8 is the xed input capital, and

 Suppose a production function F(L,K) = Q = L1/3K1/3 where L

Suppose a production function F(L,K) = Q = L1/3K1/3 where L represents the variable input labour, K = 8 is the xed input capital, and Q stands for total output. 9) Determine the average product of labour. 10) Determine the marginal product of labour. Suppose each unit of labour L is paid a wage w = 4 and each unit of capital K costs r = 4. 11) Determine the total cost. 12) Determine the average total cost. 13) Determine the average variable cost. 14) Determine the average xed cost. 15) Determine the marginal cost. 16) The production function and the total cost function display respectively 3) Increasing returns to scale and only economies of scale; b) Decreasing returns to scale and only economies of scale; c) Increasing returns to scale and only diseconomies of scale; d) Decreasing returns to scale and only diseconomies of scale; e) Increasing returns to scale and both economies and diseconomies of scale; i) Decreasing returns to scale and both economies and diseconomies of scale

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!