Description of this paper

Giventhetableofdatarepresentingashortrunproductionfunction,

Description

solution


Question

Part1;Giventhetableofdatarepresentingashortrunproductionfunction,compute total,marginalandaverage;productsanddeterminetheinputlevelwherediminishingreturnsbegins.Thedataistakenfromthis;shortrunproductionfunction,assumingcapitalisheldconstantandgivenLvaluesrangefrom010.;WhereQ=Quantityofoutputperweek;L=Labor(numberofworkersengagedinproduction);NB:Youcanusethe"InsertTable"featureinthiswindowtocompletethisproblem.;Part2;Using the same data from the previous exercise and wage rate of $400/week, if the firm could;obtain a price of $10.50 per unit of its products compute the Total Revenue, Marginal Cost;curve and Marginal Revenue product, then determine the number of workers the firm should hire;to stay profitable.;NB:Youmayusethe"Inserttable"featurewithinthiswindowtocompletethisproblem.

 

Paper#30659 | Written in 18-Jul-2015

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