Answered: A firm's short run production function…

A firm's short run production function is given by Q=20L2-2.5L3, the value of L that maximize the average product of labor is O a. 9 O b. 20 O c. 10 O d. 8

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Proudction Costs

Section: Chapter Questions

Problem 2SQ

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Concept explainers

Isocost and Isoprofit Curve Analysis

An isocost curve in the production theory that is a crucial part of economics depicts different combinations of factor inputs at a given market cost. In other words, this shows all the combinations of production factors that cost the same for the firm to employ. Usually, this can be depicted as a downward sloping straight line when the firms act as the price-takers in the factor markets. The slope of this mainly depicts the relative prices of different production factors.

Question

A firm's short run production function is
given by Q=20L2-2.5L3, the value of L that
maximize the average product of labor is
O a. 9
b. 20
O C. 10
Od. 8

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