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A firm can manufacture a product according to the production function:
Q = F(K,L) = K3/4L1/4.
a. Calculate the average product of labor, APL, when the level of capital is fixed at 81 units and the firm uses 16 units of labor.
Instruction: Round your responses to 3 decimal places.
Once the economy reaches its potential output level, and the AD Curve, the SAS Curve, and the LAS Curve are all intersecting at the same point:
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Identify the strongest two arguments in favor of such a tax and the strongest two arguments against such a tax.
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