Marginal product of capital and marginal product of labor

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1. Virtual Academy tutors schoolkids in math using an online software and in person tutors. Children can be tutored using online software, with each license used by 5 children; or they can be assigned to a tutor, with up to 3 children assigned per tutor. The production function for Virtual Academy, therefore is: Q=5K+3L where K is a software license, and L is a tutor.

a. What are the marginal product of capital and the marginal product of labor? Show your work.

b. Each hour of online tutorial is billed at $10, while in person tutoring is billed at $20. What is the value of marginal product for each input?

c. What is the highest wage that Virtual Academy would be willing to pay its tutors? Explain briefly.

d. If Virtual Academy decides to replace 3 of its online licenses with tutors, how many tutors will it have to hire? Explain briefly.

Reference no: EM131692102

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