Consider a firm whose production function is f(L,K)=ALaKb. Denote by APL(L,K)=f(L,K)/L the so-called average product of labor (here f is the production function of the firm). For which values of A, L,K, a, and b is the Average Product of Labor for this company equal to the Marginal Product of Labor? a=1 and any values of b, L, and K. a+b>1, a<1, and any values of b, L, and K. a=1/2, b=1/2, L=1, and K=3. a+b<1, a>0, b>0, and any values of L and K. a+b=1, b>0, and any values of L and K.
Consider a firm whose production function is f(L,K)=ALaKb. Denote by APL(L,K)=f(L,K)/L the so-called average product of labor (here f is the production function of the firm). For which values of A, L,K, a, and b is the Average Product of Labor for this company equal to the Marginal Product of Labor? a=1 and any values of b, L, and K. a+b>1, a<1, and any values of b, L, and K. a=1/2, b=1/2, L=1, and K=3. a+b<1, a>0, b>0, and any values of L and K. a+b=1, b>0, and any values of L and K.
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 5E
Related questions
Question
Consider a firm whose production function is f(L,K)=ALaKb. Denote by APL(L,K)=f(L,K)/L the so-called average product of labor (here f is the production function of the firm). For which values of A, L,K, a, and b is the Average Product of Labor for this company equal to the Marginal Product of Labor?
a=1 and any values of b, L, and K.
a+b>1, a<1, and any values of b, L, and K.
a=1/2, b=1/2, L=1, and K=3.
a+b<1, a>0, b>0, and any values of L and K.
a+b=1, b>0, and any values of L and K.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 3 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Managerial Economics: Applications, Strategies an…
Economics
ISBN:
9781305506381
Author:
James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:
Cengage Learning
Managerial Economics: Applications, Strategies an…
Economics
ISBN:
9781305506381
Author:
James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:
Cengage Learning
