Question: The production function for fragles is f (K, L) = L/2 + K, where L is the amount of labor used and K the

The production function for fragles is f (K, L) = L/2 + √ K, where L is the amount of labor used and K the amount of capital used.
(a) There are (constant, increasing, decreasing) _______ returns to scale. The marginal product of labor is _______ (constant, increasing, decreasing).
(b) In the short run, capital is fixed at 4 units. Labor is variable. On the graph below, use blue ink to draw output as a function of labor input in the short run. Use red ink to draw the marginal product of labor as a function of labor input in the short run. The average product of labor is defined as total output divided by the amount of labor input. Use black ink to draw the average product of labor as a function of labor input in the short run.

Step by Step Solution

3.37 Rating (172 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

a There are constant increasing decreasing ... View full answer

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

Document Format (1 attachment)

Word file Icon

649-B-E-D-S (1077).docx

120 KBs Word File

Students Have Also Explored These Related Economics Questions!