Draw the marginal product of labor

Reference no: EM131430619

Production functions, graphically. Suppose that a biotech firm makes diagnostic tests and has a fixed-proportions production function in which one unit of output (diagnostic test) is produced using one worker and two units of capital (machines). If the firm has an extra worker and no more capital, it can produce only one unit of output. Similarly, one more unit of capital with no extra labor produces no extra output.

(a) Draw 3 isoquants for this production function with labor on the horizontal axis. Label each with the associated total production. That is, label each with the appropriate Q = #. 1

(b) In the short run, the firm has 8 units of capital. Draw the short run production function and provide its formula. Hint: there will be two pieces.

(c) On a separate graph from part (b), draw the marginal product of labor and provide its formula. Again, this will have two pieces.

(d) On the same graph as part (c), draw the average product of labor and provide its formula. Again, this will have two pieces.

Reference no: EM131430619

Questions Cloud

What is the economic significance of the level of labor : Graph both the APL and the MPL curves on the axes. (You can assume that 10 = L = 40; otherwise output is negative.) Label all horizontal intercepts of both curves. What is the economic significance of the level of labor at which MPL = 0?

What can be learned from zimbardos prison experiment : PSY 1010:Although most individuals can readily predict their response during a stressful situation, recent advancements have revealed that situational forces can have a far greater impact on one's behavior than previously acknowledged. In fact, di..

Determine which group means differ significantly : For each of the other questions, use the Bonferroni or another multiple-comparisons procedure to determine which group means differ significantly.

What is the concept of brand value : Consider the following ideas to include in your answer: What type of marketing techniques and tools help a customer understand the marketplace? What is the concept of brand value

Draw the marginal product of labor : In the short run, the firm has 8 units of capital. Draw the short run production function and provide its formula. Hint: there will be two pieces.

Is it reasonable to pool the variances : Make a table giving the sample size, mean, and standard deviation for each group of rats. Is it reasonable to pool the variances?

What are several of the business environment threats to pot : Identify their core strategy elementsx (four P's). What are several of the business environment threats to Pot Belly? How might they overcome these

Determine which pairs of means differ significantly : Use the Bonferroni or another multiple-comparisons procedure to determine which pairs of means differ significantly. Summarize your results in a short report. Be sure to include a graph.

How will you follow-up with your investor : What other items would you place in your presentation to help close the deal? Why? How will you follow-up with your investor after the presentation? What are the benefits of a follow-up

User Account

All Pages