Question 7 Consider the following short-run production function (where L = variable input, Q =
output):
Q = 6L3 – 0.4L3
a. Determine the marginal product function (MPL).
[1 marks]
b. Determine the average product function (APL).
[1 marks]
c. Find the value of L that maximizes Q.
[1 marks]
d. Find the value of L at which the marginal product function takes on its maximum
value.
[1 marks]
e. Find the value of L at which the average product function takes on its maximum
value.
[1 marks]
[TOTAL: 5 MARKS]
1
Expert's answer
2013-02-26T10:59:11-0500
Consider the following short-run production function (where L = variable input, Q = output): Q= 6L3 – 0.4L3 a.Determine the marginal product function (MPL). MPL = Q' = 16.8L2 b.Determine the average product function (APL). APL = Q/L = 5.6L2 c.Find the value of L that maximizes Q. Q = max, when Q' = MPL = 0, L = 0 d.Find the value of L at which the marginal product function takes on its maximum MPL = max, when MPL' = 0, 33.6L = 0, L = 0 e.Find the value of L at which the average product function takes on its maximum value. APL = max, when APL' = 0, 11.2L = 0, L = 0
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