1. Short-run production functions, with equations. (9 points) Suppose the production function for...

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1. Short-run production functions, with equations. (9 points) Suppose the production function for neon signs is given by: Q = f(K, L) = KL - 0.8K2 - 0.2L 2 (a) (2 points) Suppose that capital is fixed at K = 10 in the short run. Find the expression for the average product of labor (APL). (b) (2 points) Again assuming that K = 10, determine the expression for the marginal product of labor (MPL). (c) (5 points) Graph both the APL and the MPL curves on the axes. (You can assume that 10 = L = 40; otherwise output is negative.) Label all horizontal intercepts of both curves. What is the economic significance of the level of labor at which MPL = 0?

Robert · Accepted Answer

1. Short-run production functions, with equations. (9 points)  
Suppose the production function for neon signs is given by: Q = f(K, L) = KL - 0.8K2 - 0.2L 2 
(a) (2 points) Suppose that capital is fixed at K = 10 in the short run. Find the expression for the 
average product of labor (APL).

1. Short-run production functions, with equations. (9 points) Suppose the production function for neon signs is given by: Q = f(K, L) = KL - 0.8K2 - 0.2L 2 (a) (2 points) Suppose that capital is fixed...

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