Compute and illustrate mpl and apl

Reference no: EM13690323

Let q=K^(.75)*L^(.25) denote the production function, and w and r denote the prices of K (captial) and L (labor). Suppose K is fixed at 10 and L is variable.

2.1 Compute and illustrate MPL and APL

2.2 Derive FC, VC and TC

2.3 Derive AVC, AFC, ATC, and MC

2.4 Why is MC>AVC?

2.5 Where does the MC intersect the AC and why?

Reference no: EM13690323

Questions Cloud

Intermediate microeconomics revenue and profit max : Imagine there's only one movie theatre near a school campus. Local demand for movies is given by: What is the profit function? What is the theatre's maximizing q* and p*?

Consider a riparian model : Consider a Riparian model.

A study of the checkout lines at the safeway supermarket : A study of the checkout lines at the Safeway Supermarket revealed that between 4 p.m. and 7 p.m. on weekdays there is an average of four customers waiting in line. What is the probability that you visit Safeway today during this period and find:

Based on a business or industry which you are familiar : You can choose a business or industry in which you are employed or a family member is employed or just an industry in which you are interested. Which type of market does this business or industry compete in?

Compute and illustrate mpl and apl : Let q=K^(.75)*L^(.25) denote the production function, and w and r denote the prices of K (captial) and L (labor). Suppose K is fixed at 10 and L is variable. Compute and illustrate MPL and APL

Find this actual-dollar amount : Normal 0 false false false EN-US X-NONE X-NONE A person desires to receive..

Macroeconomics deals with the economy as a whole : A small grocery store faces the following demand for lobster. PRICE & QUANTITY: $0 and 80 quantities. $ 6 and 60 quantities, $12 and 40 quantities, $18 and 20 quantities, $24 and 10 quantities.

Ratio method to select one of these two alternatives : Use the b/c ratio method to select one of these two alternatives: alternative 1 has an initial cost of 100$, has annual maintenance costs of $5 per year and has potential damage costs of $950.

User Account

All Pages