The production function of a company is q = 2 KO.5 L 0.5. %3D a) Assuming that capital is equal to 100 units, obtain the short-run production function of the firm and plot it. b) Obtain the marginal and average productivity of labour and graph both. c) Find the amount of work that the company must hire to obtain the output levels q0 = 25, q1 %3D
The production function of a company is q = 2 KO.5 L 0.5. %3D a) Assuming that capital is equal to 100 units, obtain the short-run production function of the firm and plot it. b) Obtain the marginal and average productivity of labour and graph both. c) Find the amount of work that the company must hire to obtain the output levels q0 = 25, q1 %3D
Chapter10: Cost Functions
Section: Chapter Questions
Problem 10.9P
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