Suppose the production function for widgets is given by q=kl-0.8k².0.212 where q represents the annual quantity of widgets produced, k represents annual capital input, and I represents annual labor input. Suppose k = 10; at what level of labor input does this average productivity reach maximum? are produced at that point? (please put your answer in numerical values with no comma or decimal place). How many widgets. 0? (please put your answer in numerical values with no comma or decimal place). If k= 10, at what level of labor input does MPL = 0? Suppose capital inputs were increased to k = 20, at what level of labor input does this average productivity reach maximum? decimal place). How many widgets are produced at that point? (please put your answer in numerical values with no comma or (please put your answer in numerical values with no comma or decimal place). If k = 20, at what level of labor input does MPL = (please put your answer in numerical values with no comma or decimal place). Does the widget production function exhibit constant, increasing, or decreasing returns scale? (please put your answer as either constant, increasing, or decreasing, lower case only).

Suppose the production function for widgets is given by q=kl-0.8k².0.212 where q represents the annual quantity of widgets produced, k represents annual capital input, and I represents annual labor input. Suppose k = 10; at what level of labor input does this average productivity reach maximum? are produced at that point? (please put your answer in numerical values with no comma or decimal place). How many widgets. 0? (please put your answer in numerical values with no comma or decimal place). If k= 10, at what level of labor input does MPL = 0? Suppose capital inputs were increased to k = 20, at what level of labor input does this average productivity reach maximum? decimal place). How many widgets are produced at that point? (please put your answer in numerical values with no comma or (please put your answer in numerical values with no comma or decimal place). If k = 20, at what level of labor input does MPL = (please put your answer in numerical values with no comma or decimal place). Does the widget production function exhibit constant, increasing, or decreasing returns scale? (please put your answer as either constant, increasing, or decreasing, lower case only).

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter9: Production Functions

Section: Chapter Questions

Problem 9.2P

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Suppose the production function for widgets is given byq = kl - 0.8k2 - 0.2l2where q represents the annual quantity of widgets produced, k represents annual capital input, and l represents annual labor input.a. Suppose k = 10; graph the total and average productivity of labor curves. At what level of labor input does this average productivity reach a maximum? How many widgets are produced at that point?b. Again assuming that k = 10, graph the MPl curve. At what level of labor input does MPl = 0?c. Suppose capital inputs were increased to k = 20. How would your answers to parts (a) and (b) change?d. Does the widget production function exhibit constant, increasing, or decreasing returns to scale?
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