Quiz20_answers.docx - Econ 301, F16, Artz Name: _ Quiz 20...

Econ 301, F16, Artz Name: __________________
Quiz 20 Team: _________________
November 2, 2016
Deana’s Donut Shoppe has the production function
q = 5 KL + 5 K
2
L
2
− 5 L
3
.
Assume we are
in the short run so K is fixed at K=2.
1. What is Deana’s short run production function?
3
2. What is the equation for the marginal product of labor for Deana’s production function in
the short run?
3. What is the marginal product of labor if Deana currently employs 1 worker (L=1)?
Explain what this number tells you.
4. What is the equation for average product of labor for Deana’s production function in the
short run?
5. What is the average product of labor if Deana currently employs 1 worker (L=1)?
Explain what this number tells you.