Calculate the marginal product of labor when 9units utilised

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The manager of a national retailing outlet recently hired an economist to estimate the firm's production function. Based on the economist's report, the manager now knows that the firm's production function is given by Q=K^(1/2) L^(1/2) and that capital is fixed at 1 unit.

a. Calculate the average product of labor when 9 units of labor are utilized.

b. Calculate the marginal product of labor when 9 units of labor are utilized.

c. Suppose the firm can hire labor at a wage of $10 per hour and output can be sold at a price of $100 per unit. Determine the profit-maximizing levels of labor and output.

d. What is the maximum price of capital at which the firm will still make nonnegative profits?

Reference no: EM13234928

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