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Question 2 A firm's short-run production function is given by Q=L(11 + L L²) where L is units of labour (not necessarily an integer, but is non-negative) (a) Find the size of the workforce (L) that maximises the output. Prove that this is a maximum. (b) The Average Product of Labour (APL) is the defined as AP, maximises AP₁. = (c) The Marginal Product of Labour (MP) is the defined as MPL is at its maximum. = Find the size of the workforce that dL Verify that MP₁ = AP₁ when AP₁

Question 2 A firm's short-run production function is given by Q=L(11 + L L²) where L is units of labour (not necessarily an integer, but is non-negative) (a) Find the size of the workforce (L) that maximises the output. Prove that this is a maximum. (b) The Average Product of Labour (APL) is the defined as AP, maximises AP₁. = (c) The Marginal Product of Labour (MP) is the defined as MPL is at its maximum. = Find the size of the workforce that dL Verify that MP₁ = AP₁ when AP₁

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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Question 2 A firm's short-run production function is given by Q = L (11 + L L²) where L is units of labour (not necessarily an integer, but is non-negative) (a) Find the size of the workforce (L) that maximises the output. Prove that this is a maximum. (b) The Average Product of Labour (AP) is the defined as AP₁ = . Find the size of the workforce that maximises AP₁- (c) The Marginal Product of Labour (MP) is the defined as MP₁ = dL is at its maximum. Verify that MP₁ = AP₂ when AP₂
Transcribed Image Text:Question 2 A firm's short-run production function is given by Q = L (11 + L L²) where L is units of labour (not necessarily an integer, but is non-negative) (a) Find the size of the workforce (L) that maximises the output. Prove that this is a maximum. (b) The Average Product of Labour (AP) is the defined as AP₁ = . Find the size of the workforce that maximises AP₁- (c) The Marginal Product of Labour (MP) is the defined as MP₁ = dL is at its maximum. Verify that MP₁ = AP₂ when AP₂
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