Scribd
Upload
18 views1 page

ME - Tutorial 3

Uploaded by

Vivek Gupta
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
18 views1 page

ME - Tutorial 3

Uploaded by

Vivek Gupta
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 1

CoE Tutorial 10

Q1. A firm has the following short-run production function:


Q = 150L + 18L2 – 1.5L3
where Q = quantity of output per week
L = number of workers employed.
a) When does the law of diminishing returns take effect?
b) Calculate the range of values for labour over which stages I, II and III occur.
c) Assume that each worker is paid £15 per hour for a 40-hour week, and that the output is priced
at £5. How many workers should the firm employ?

Q2. Suppose that you are given the following production function:
Q = 100K0.6L0.4
Determine the marginal product of capital and the marginal product of labor when K = 25 and L =
100.

Q3. For each of the following production functions, determine whether returns to scale are decreasing,
constant, or increasing
a) Q = 25K0.5L0.5
b) Q = 2K + 3L + 4KL
c) Q = 100 + 3K + 2L
d) Q = 20K0.6L0.5

Q4. Suppose that the average product of labor is given by the equation
APL = 100 + 500L - 5L2
a) What is the equation for the total product of labor (TPL)?
b) What is the equation for the marginal product of labor (MPL)?
c) At what level of labor usage is APL = MPL?

Q5. Shoe & Co. manufactures shoes for export. The production function is TP = 15L2 – L3
a) If Shoe & Co., would like to achieve the highest possible APL what is the labor to be employed?
b) What can be the Average Productivity of Labor (APL) when labor employed is 7.5?
c) What is the Marginal Productivity of Labor (MPL) when the Average Productivity of Labor (APL)
is maximum?

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy