{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

problemset3[1]

# problemset3[1] - EC201 Fall 2007 Prof Jordi Jaumandreu...

This preview shows pages 1–2. Sign up to view the full content.

EC201, Fall 2007, Prof. Jordi Jaumandreu Problem set #3 Production Function 1. Each extra worker produces an extra unit of output up to six workers. After six, no additional output is produced. Draw the total product of labor, average product of labor, and marginal product of labor curves. 2. Suppose a fi rm has a fi xed-proportions production function, in which one unit of output is produced using one worker and two units of capital. If the fi rm has an extra worker and no more capital, it still can produce only one unit of output. Similarly, one more unit of capital does the fi rrn no good. 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. 3. Mark launders his white clothes using the production function q = B + 1 2 G , where B is the number of cups of Clorox bleach and G is the number of cups of a generic bleach that is half as potent. Draw an isoquant. What is the marginal product of B ? What is the marginal rate of technical substitution at each point

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### Page1 / 2

problemset3[1] - EC201 Fall 2007 Prof Jordi Jaumandreu...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online