Following is the information available for Bubble Gums produced by Bano and Co. Output (Q) Labor (L) Capital (K) Price 0 0 5 10 100 1 5 10 300 2 5 10 600 3 5 10 800 4 5 10 950 5 5 10 1,080 6 5 10 1,120 7 5 10 1,120 8 5 10 1,050 9 5 10 1,000 10 5 10 Define the production function in long run and short run. Find MPL and APL and exhibit it graphically. Identify all three stages of production.
Following is the information available for Bubble Gums produced by Bano and Co. Output (Q) Labor (L) Capital (K) Price 0 0 5 10 100 1 5 10 300 2 5 10 600 3 5 10 800 4 5 10 950 5 5 10 1,080 6 5 10 1,120 7 5 10 1,120 8 5 10 1,050 9 5 10 1,000 10 5 10 Define the production function in long run and short run. Find MPL and APL and exhibit it graphically. Identify all three stages of production.
Chapter6: Proudction Costs
Section: Chapter Questions
Problem 3SQP
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Please answer all parts.
Following is the information available for Bubble Gums produced by Bano and Co.
|
Output (Q) |
Labor (L) |
Capital (K) |
Price |
|
0 |
0 |
5 |
10 |
|
100 |
1 |
5 |
10 |
|
300 |
2 |
5 |
10 |
|
600 |
3 |
5 |
10 |
|
800 |
4 |
5 |
10 |
|
950 |
5 |
5 |
10 |
|
1,080 |
6 |
5 |
10 |
|
1,120 |
7 |
5 |
10 |
|
1,120 |
8 |
5 |
10 |
|
1,050 |
9 |
5 |
10 |
|
1,000 |
10 |
5 |
10 |
- Define the production function in long run and short run.
- Find MPL and APL and exhibit it graphically.
- Identify all three stages of production.
- Assume you are the Economist for Bano and Co. decide how many labors would you hire to attain the firm’s objective and why.
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