Question

Question  9

If the production function is given by

Q = 300L − 4L,

where Q denotes output and L denotes the size of workforce, calculate the value of marginal product of  labour if L = 9.

a.        11

b.        46

c.        16

d.    146

Answer 1

Solution.

$Q=300\sqrt{l}-4l.$

Marginal product

$MP=\frac{dQ}{dl}.$

$MP=300\frac{1}{2\sqrt{l}}-4=\frac{150}{\sqrt{l}}-4.$

If $l=9,$ then

$MP=\frac{150}{\sqrt{9}}-4=46.$

Answer. b