Question: Suppose you are given the following equation for production function: Q=21L + 9L^2 - L^3 where Q is the quantity of output and L is

Suppose you are given the following equation for production function:

Q=21L + 9L^2 - L^3

where Q is the quantity of output and L is the quantity of labour input.

a)Sketch the production function and on a separate diagram sketch the MPL & APL curves. Indicate all the key values.

b) now suppose that the price of each unit of labour is $500, what is the TVC AND AVC when the firm maximises its labour productivity ?

c) on 3rd diagram, sketch the MC and and the AVC that correspond to the MPL and APL curves.

I need help with the graphs by clearly mentioning the points on the graph wherever required.

Thanks.

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!

Q:

Question 1 0 l 1 point A firm has the following short run production function: q=4L-5_ The price of output is $28 per unit and the price of labour is $7. The amount of labour the firm demands in...

Q:

help me kindly EXERCISES FOR CHAPTER 1 Exercise 1.1 An economy has 100 identical workers. Each one can produce four cakes or three shirts, regardless of the number of other individuals producing each...

Q:

Exercise #1. A firm produces output using the technology y= -KLi, 1,000 where capital, K, is measured in machine-hours, labor, L, is measured in person-hours, and y denotes the yearly output. The...

Q:

123 1. Two firms are developing new technology to allow consumers to taste food online. Given the risks and the relatively small anticipated size of this market, compatibility of technologies is very...

Q:

Below are the questions Exercise #1. A firm produces output using the technology y = 7 1.000 where capital, K, is measured in machine-hours, labor, L, is measured in person-hours, and y denotes the...

Q:

Explain the following. What Corporate Responsibility means to Deloitte For any enlightened business, having a clearly defined approach to the impact of climate change, involvement with local...

Q:

Practice question 1 Suppose a firm has the following short run cost function: C = 20c]2 + 1280 1. Suppose price = $500. How much output does this firm supply to the market? 2. Calculate total revenue...

Q:

Thanks in advance Exercise #1. [10 pts.] A monopolist has an inverse demand curve ven by p(y) = 12-y and a cost curve given by c(y) = y". Describe how to determine its profit-maximizing level of...

Q:

Clear answer Exercise 4.5 Suppose you are given the following data on incomes and expenditures for the econ- omy of Westland, in current prices for factors of production and outputs. Consumption...

Q:

Page 1 of 5 ASSIGNMENT # 2 - ESTIMATION Cost estimating is one of the most important steps in project management. A cost estimate establishes the base line of the project cost at different stages of...

Q:

CUMULATIVE PROBLEM - Elton Systems This comprehensive problem starts in this chapter and continues in Chapters 3, 4, and 5. ************** ******** ********** H On October 1, 2020, Elton Worth...

Q:

Does a state's refusal to grant scholarships to students who pursue a degree in pastoral ministries violate the Free Exercise Clause of the First Amendment?

Q:

17. Which statement is true? ( LO2 , 7 ) a) GDP tells us how much we produce as well as what we produce. b) GDP tells us neither how much we produce nor what we produce. c) GDP tells us what we...

Q:

The process of _ _ _ _ _ _ _ _ shares observations of group processes and ensures that hidden problems are dealt with. Group of answer choices harmonizing gatekeeping consensus testing diagnosing

Q:

On an individual basis, review Hofstedes organizational cultural model as described at https://www.quickbase.com/blog/6-dimensions-of-organizational-culture-which -one-is-right-for-you. The model...

Q:

You recently joined a community recreational centre that hires many young workers. You are told of a growing concern about the health and safety of these employees. What would you do and why?

Q:

You work in the medical equipment and pharmaceutical department at a local hospital. Your department is responsible for dispensing medical supplies and prescriptions to patients. There have been...