п»їECO 550 WEEK 4 SECTION 7 AND CHAPTER 8 PROBLEMS
Inside the deep creek mining firm described through this chapter stand 7. you suppose again that labor is the adjustable input and capital may be the fixed suggestions. Specifically, imagine the firm owns a bit of equipment possessing a 500-bhp score. A. Full the following tableLabor input L(#of workers
Total production TPL (=Q)
Marginal Product (MPL)
Average Product APL
B. Plan the (i) total item, (ii) minor product, (iii) average merchandise functions.
C. Determine the boundaries of these three phases of development.
6. Consider the following short-Run production function (where insight, ): В
A. Determine the minor product
N. Determine the standard product function
C. Find the value of L that maximizes Q
Deb. Find the significance of L from which the minor product function takes on the maximum benefit E. Find the value of M at which the typical product function takes on it is maximum worth.
8. Depending on the production function parameter quotes reported in Table 7. 4:
A. Which industry (or industries) appears to display decreasing returns to size? (Ignore the void of statistical relevance. )
M. Which sector comes best to showing constant results to level?
C. That will a given percentage increase in capital result in the major percentage increase in output?
M. In what industry will the percentage embrace production staff result in the most significant percentage embrace output?
9. Consider the subsequent Cobb- Douglas production function for the bus vehicles system within a particular metropolis:
Q=? M ^? one particular F^? two K^? three or more
Where T is the labor input in worker several hours;
F may be the fuel insight in gallons;
K is the capital input in quantity of buses;
Queen is the end result measured in millions of tour bus milesВ
Suppose that the variables (a,? 1,? 2,? 3) of this unit were estimated using annual data to get...