Suppose the production function for widgets is given by KL – 0.5K2 – 0.1 L2 , where q represents the annual quantity of widgets produced, K represents annual capital input, and L represents annual labor input. (a). Suppose K=5; what is the average productivity of labor (Average product of Labor, MPL) (b).  Suppose K=10; at what level of labor input does the total output reach the maximum?

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Chapter7: Production Economics
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Suppose the production function for widgets is given by KL – 0.5K2 – 0.1 L2 , where q represents the annual quantity of widgets produced, K represents annual capital input, and L represents annual labor input.

(a). Suppose K=5; what is the average productivity of labor (Average product of Labor, MPL)

(b).  Suppose K=10; at what level of labor input does the total output reach the maximum?

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