Question

Suppose that you have the following production function. $Q = KL + 6L^2 - \frac{1}{3}L^3$ Where L represents Labour, K represents Capital and Q represents Output. Assume the value of capital is 45 units. Compare: a) Value of L that maximizes output vs marginal product b) Value of L that maximizes output vs average product

          Suppose that you have the following production function.
$Q = KL + 6L^2 - \frac{1}{3}L^3$
Where L represents Labour, K represents Capital and Q represents
Output.
Assume the value of capital is 45 units.
Compare:
a) Value of L that maximizes output vs
marginal product
b) Value of L that maximizes output vs average product

Suppose that you have the following production function.
Q = KL + 6L^2 - (1)/(3)L^3
Where L represents Labour, K represents Capital and Q represents
Output.
Assume the value of capital is 45 units.
Compare:
a) Value of L that maximizes output vs
marginal product
b) Value of L that maximizes output vs average product

Added by Melissa M.

Principles of Economics

Gregory Mankiw 8th Edition

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Solved by Expert Brooke Bussoletti

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The production function given is Q = KL + 6L^2 - L^3, where L represents Labour, K represents Capital, and Q represents Output. We are given that the value of capital (K) is 45 units. We need to find the value of L (Labour) that maximizes output and compare this Show more…

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Suppose that you have the following production function: Q = KL + 6L^2 - L^3, where L represents Labour, K represents Capital, and Q represents Output. Assume the value of capital is 45 units. Compare: a) Value of L that maximizes output vs marginal product b) Value of L that maximizes output vs average product