Answer to Question #117947 in Microeconomics for Alexander's

Question

Suppose the production function is given by Q (L,k)=L 3\2 k1\2 assuming capital fixed find APL and MPL

Answer 1

$$AP_L=\frac{TP}{L}$$

$$AP_L=\frac{L^{\frac{3}{2}} K^{\frac{1}{2}}}{L}=(LK)^{\frac{1}{2}}$$

$$MP_L=\frac{\varDelta TP_L}{ \varDelta L}$$

$$MP_L=\frac{3}{2}L^{\frac{1}{2}}K^{\frac{1}{2}}$$