Week 5 Tutorial Questions - Tutorial Questions for Week 5...

Tutorial Questions for Week 5 beginning March 28
th
[Easter week]
1. Laserex, a manufacturer of lasers, reports that the marginal product of labour is 12 units of
output per hour of labour, and that the marginal rate of technical substitution of labour for
capital is 4. What is the slope of the isoquant? What is the marginal product of capital?
Assume K is on vertical axis and L on horizontal axis for the definition of slope of isoquant.
2. (Perloff) The production at a copy shop is 1000 min( ,3 ) q L K   , where q is the number of
copies per hour, L is the number of workers, and K is the number of copy machines. As an
example, if
2 L 
and
1 K 
, then
min( ,3 ) 2 L K 
, and
2000 q
a. Draw the isoquants for this production function.
b. Draw the total product, average product, and marginal product of labor curves for this
production function for some fixed level of capital.

.