1. Compute the APL (average product of labor). 2. Compute the MPL (marginal product of labor). 3. What is the value of L* at which APL is the highest? 4. For L > L*, which one is bigger, APL or MPL? How about when I < L* and L = L*? 5. Draw APL and MPL on the y-axis as a function

Microeconomic Theory
12th Edition
ISBN:9781337517942
Author:NICHOLSON
Publisher:NICHOLSON
Chapter9: Production Functions
Section: Chapter Questions
Problem 9.2P
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Question 2:
Consider the following production function that
depends only on labor:Q = 2L+6L² - 3L³
1. Compute the APL (average product of labor).
2. Compute the MPL (marginal product of labor).
3. What is the value of L* at which APL is the
highest?
4. For L > L*, which one is bigger, APL or
MPL? How about when I < L* and L = L* ?
5. Draw APL and MPL on the y-axis as a function
of L on the x-axis. Label the point of the
intersection of APL and MPL.
Transcribed Image Text:Question 2: Consider the following production function that depends only on labor:Q = 2L+6L² - 3L³ 1. Compute the APL (average product of labor). 2. Compute the MPL (marginal product of labor). 3. What is the value of L* at which APL is the highest? 4. For L > L*, which one is bigger, APL or MPL? How about when I < L* and L = L* ? 5. Draw APL and MPL on the y-axis as a function of L on the x-axis. Label the point of the intersection of APL and MPL.
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