Find average and marginal product

Reference no: EM1312405

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^1/2L^1/2 and that capital is fixed at 1 unit.

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

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

Reference no: EM1312405

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