Answer to Question #173758 in Economics of Enterprise for Michael Okon NKANTA

Question #173758

Suppose the total product (Q) is given by the production function; [q = 4KL-0.5]

Where K= capital = 12 and L = unit of labour -36.

Calculate the average product of labour


1
Expert's answer
2021-03-23T08:29:26-0400

We can find the average product of labour as follows:


APL=qL,AP_L=\dfrac{q}{L},APL=4KL0.5L=4KL1.5.AP_L=\dfrac{4KL^{-0.5}}{L}=\dfrac{4K}{L^{1.5}}.

Substituting the numbers, we get:


APL=4KL1.5=412361.5=0.22AP_L=\dfrac{4K}{L^{1.5}}=\dfrac{4\cdot12}{36^{1.5}}=0.22

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