Answer to Question #183591 in Microeconomics for NARTEY SAMUEL

Question

Instruction(s): Attempt Question All Questions

1. The production function for Ghana Rice is given by Q = 100 KL , where Q is the number of bags produced per hour K is the units of capital employed and

L is the number of workers hired each hour.

a. Calculate the Q = 1000 isoquant for this production function and illustrate it on

a diagram

b. If K = 10 , how many workers are required to produce Q = 1000 ? What is

average productivity of Ghana Rice workers?

c. Suppose technical progress the production function to Q = 200 KL , answer

parts (a) and (b) for this new situation.

Answer 1

a) Since $Q=1000$ then $1000 = 100KL => K\times L = 10$

b) $1000=100\times10\times L = > L=1$

$APL = \frac{Q}{L} = \frac {100K\times L}{L} = 100\times K = 1000$

c) Since $Q = 200K \times L$ then $1000 = 200KL => K\times L = 5$

$1000=200\times10\times L = > L=0,5$

$APL = \frac{Q}{L} = \frac {200K\times L}{L} = 200\times K = 2000$