Consider the following production function: q = 2V1 + 3VK Assume K = 16, derive the marginal product schedule for L. What direction is it moving? a. b. What returns to scale does the production function exhibit? Explain Let w = $4, r = $2, and K = 16; for the given values of a determine average fixed costs, average variable costs, average total costs, and marginal costs: C. L AFC AVC ATC MC 9 12 13 14 15 16 K 16 16 16 16 16
Consider the following production function: q = 2V1 + 3VK Assume K = 16, derive the marginal product schedule for L. What direction is it moving? a. b. What returns to scale does the production function exhibit? Explain Let w = $4, r = $2, and K = 16; for the given values of a determine average fixed costs, average variable costs, average total costs, and marginal costs: C. L AFC AVC ATC MC 9 12 13 14 15 16 K 16 16 16 16 16
Microeconomics A Contemporary Intro
10th Edition
ISBN:9781285635101
Author:MCEACHERN
Publisher:MCEACHERN
Chapter7: Production And Cost In The Firm
Section: Chapter Questions
Problem 21PAE
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Consider the following production function: q = 2V1 + 3VK Assume K = 16, derive the marginal product schedule for L. What direction is it moving? a. b. What returns to scale does the production function exhibit? Explain Let w = $4, r = $2, and K = 16; for the given values of a determine average fixed costs,
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