Problem 05-01
A firm's analysts estimate that the firm can manufacture a product according to the production function:
Q=F(K,L)=K^(3/4)L^(1/4)
a. Calculate the average product of labor, AP_L, when the level of capital is fixed at 81 units and the firm uses Instruction: Enter your responses rounded to three decimal places.
What is the average product of labor when the firm uses 256 units of labor?
b. Find an expression for the marginal product of labor, MP_L, when the amount of capital is fixed at 81 units.
Instruction: The second response is the exponent on L in the expression. Enter your responses rounded to
MP_L=â—», imes L^()
Then, illustrate that the marginal product of labor depends on the amount of labor hired by calculating the 16 and 81 units of labor.
Instruction: Enter your responses rounded to three decimal places.