The economist for the ABC Truck Manufacturing Corporation has calculated a production function for the manufacture of their medium-size trucks as follows: Q = 1.3 * (LO.75) * (K0.3) Where Q is the number of trucks produced per week, L is the number of labor hours per day and K is the daily
The economist for the ABC Truck Manufacturing Corporation has calculated a production function for the manufacture of their medium-size trucks as follows: Q = 1.3 * (LO.75) * (K0.3) Where Q is the number of trucks produced per week, L is the number of labor hours per day and K is the daily
Chapter6: Proudction Costs
Section: Chapter Questions
Problem 3SQP
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Transcribed Image Text:The economist for the ABC Truck Manufacturing
Corporation has calculated a production function for
the manufacture of their medium-size trucks as follows:
Q = 1.3 * (L0.75) * (K0.3)
Where Q is the number of trucks produced per week, L
is the number of labor hours per day and K is the daily
usage of capital investment.
Calculate the marginal product of labor and marginal
product of capital using the below data?
Labor
Capital
100
50
120
60
150
75
200
100
300
150
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