Question

Consider this short run production function, similar to many we discussed in class:

Q = (-.05)*L3 + (2)*L2



What is the value of average product (AP) when you employ 30 workers?

Answer 1

Average product is: $AP = Q/L = (-0.05L^3 + 2L^2)/L = -0.05L^2 + 2L = -0.05*30^2 + 2*30 = 15.$