Let L represent the number of workers hired by a firm, and let Q represent that firm's quantity of output. Assume two points on the firm's production function are (L=6, Q=147) and (L=7, Q=184). The marginal product of the seventh worker is
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Let L represent the number of workers hired by the firm, and let Q represent that firm's quantity of output. Assume two points on the firm's production function are (L = 12, Q = 122) and (L = 13, Q = 130). Then the marginal product of the 13th worker is 10 units of output.
Md.Daniyal A.
Suppose that a firm's production function is given by $Q=12 L-L^{2},$ for $L=0$ to $6,$ where $L$ is labor input per day and $Q$ is output per day. Derive and draw the firm's demand for labor curve if the firm's output sells for $\$ 10$ in a competitive market. How many workers will the firm hire when the wage rate is $\$ 30$ per day? $\$ 60$ per day? (Hint: The marginal product of labor is $12-2 L$.)
Andrew D.
The production function for the personal computers of DISK, Inc., is given by \[ q=10 K^{0.5} L^{0.5} \] where $q$ is the number of computers produced per day, $K$ is hours of machine time, and $L$ is hours of labor input. DISK's competitor, FLOPPY, Inc., is using the production function \[ q=10 K^{0.6} L^{0.4} \] a. If both companies use the same amounts of capital and labor, which will generate more output? b. Assume that capital is limited to 9 machine hours, but labor is unlimited in supply. In which company is the marginal product of labor greater? Explain.
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