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3-10-09 - • Need 16F for 4B minimum is 4 units When MPL =...

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Microeconomics – Office Hours Notes – 3/10/09 4 Fasteners to 1 Board = 1 Shelf The equation that you develop from the information given in the problem must match. In other words, if you need only 1 shelf, then you need to use the ratio that generates 1 unit: o Q(B,F) = min{B, (¼)F} = 1 = output of 1 unit o This means that to get one unit of output, you must adjust the ratio in you production function to reflect the desired number of units (in this case 1). On the other hand, Q(B,F) = min{4B, F} = 4 units
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Unformatted text preview: • Need 16F for 4B minimum is 4 units When MPL = 0 when the slope of the total product = 0 and when the total product starts to fall. • This is NOT the same value that you get when MPL and APL intersect MPL = APL gives you the value when the APL goes from + to negative (the inflection point vertex of the curve) • This equation will give you the intersection point for MPL and APL o This gives the same values as taking the derivative of the APL curve...
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