Question: Suppose the production function for widgets is given by: q = kl - 0.8k 2 - 0.2l 2 , where q represents the annual quantity
Suppose the production function for widgets is given by: q = kl - 0.8k2 - 0.2l2, where q represents the annual quantity of widgets produced, k represents annual capital input, and l represents annual labor input. Suppose k = 10. The average product of labor of labor reaches it maximum when how many units of labor input are used? At that point, the number of widgets produced is how many units?
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
