Answer to Question #154347 in Microeconomics for Asmaa

Question

Ronald's Outboard Motor Manufacturing plant production function is Ronald is investigating a new outboard motor manufacturing technique . Ronald believes that if he adopts the new technique , his production function for outboard motors will become : Y(K, L) = 2KL Y(K, L) = 5KL Given that Ronald uses 4 units of machine instead of 2 units , sketch his production function with the old technique and the new technique as he increases labor hours . With the new technique , do labor hours contribute more to production ? Labor L / 1, 4, 9, 16 Calculate the marginal product of labor at point 16 the average product of labor at point 16 .

Answer 1

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