(b)- The production funeaKTor laptops of Patel is given by q = 10K°5 L°Swhere q is number of laptops produced per day, K is hours of machine time andL is labour hours. Patel's competitor Manish is using the production functionq = 10K L4.(i)If both companies use the same amount of capital and labor, which willgenerate more output?(i1)Assume that capital is limited to 9 machine hours, but labour is unlimitedin supply. In which company is the marginal product of labor greater?Explain.

The function of production in economics is to show an equation used between the number of factors of…

(b) The production funeaTor laptops of Patel is given by q = 10K° L°S where is number of laptops produced per day, K is hours of machine time and L is labour hours. Patel's competitor Manish is using the production function q = 10K L4 %3D If both companies use the same amount of capital and labor, which will generate more output? (i) Assume that capital is limited to 9 machine hours, but labour is unlimited in supply. In which company is the marginal product of labor greater? Explain. (ii)

(b) The production funeaTor laptops of Patel is given by q = 10K° L°S where is number of laptops produced per day, K is hours of machine time and L is labour hours. Patel's competitor Manish is using the production function q = 10K L4 %3D If both companies use the same amount of capital and labor, which will generate more output? (i) Assume that capital is limited to 9 machine hours, but labour is unlimited in supply. In which company is the marginal product of labor greater? Explain. (ii)

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter7: Production Economics

Section: Chapter Questions

Problem 8E

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