Question

The production function at Ginko’s Copy Shop is q = 1000 × min(L, 4K) , where q is the

number of copies per hour, L is the number of workers and K is the number of copy machines.

As an example if L=10 and K=1 , then min(L, 4K) = 4 and q = 4000

a) Draw the isoquants for this production function?

b) Fix the level of capital at 50. Draw the total product , average product, and marginal

product of labour curves for this production function.

Answer 1

a) An isoquant is a curve that shows all the combinations of inputs that yield the same level of output of q = 4,000.

b) we need to know the exaxt quantities of total product to calculate amd graph TP, AP, MPL curves.