Consider the following production function: y = f(L, K) = L0K5, where L is the amount of labor that the firm uses, K is the amount of capital, and y is output. 1st attempt See Hint Suppose that the firm is using 64 units of capital. What is the marginal product of labor when the firm is using 10 units of labor? What is the marginal product of labor if the firm is using 20 units of labor? Give your answers to two decimal places.

Consider the following production function: y = f(L, K) = L0K5, where L is the amount of labor that the firm uses, K is the amount of capital, and y is output. 1st attempt See Hint Suppose that the firm is using 64 units of capital. What is the marginal product of labor when the firm is using 10 units of labor? What is the marginal product of labor if the firm is using 20 units of labor? Give your answers to two decimal places.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter7: Production, Costs, And Industry Structure

Section: Chapter Questions

Problem 42P: A small company that shovels sidewalks and driveways has 100 homes signed up for its services this...

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A small company that shovels sidewalks and driveways has 100 homes signed up for its services this winter. It can use various combinations of capital and labor: intensive labor with hand shovels, less labor with snow blowers, and still less labor with a pickup truck that has a snowplow on front. To summarize, the method Choices are: Method 1: 50 units of labor, 10 units of capital Method 2: 20 units of labor, 40 units of capital Method 3: 10 units of labor, 70 units of capital If hiring labor for the winter costs $100/unit and a unit of capital costs 400, what is the best production method? What method should the company use if the cost of labor rises to $20/unit?