EC201, Fall 2007, Prof. Jordi Jaumandreu
Solutions to Problem set #3
Production Function
1. Total product: up to 6 workers a line with 45
o
inclination, from 6 workers
on a horizontal line hitting the yaxis at 6; Average product of labor: up to
6 workers a horizontal line at the value 1, fron 6 workers on a continuously
decreasing line (with value
AP
L
=
6
L
); Marginal product of labor:
up to 6
workers a horizontal line at the value 1, from 6 workers on the xaxis (marginal
product is zero).
2.
a.
The isoquants have right angles on the ray with a slope 2.
If we
fi
x capital at 12, we will have exactly the Total product, Average product and
marginal product curves of the previous problem.
3. (ATTENTION: there is a typo in this problem in the textbook problem
10 at page 175 production function must be
q
=
B
+
1
2
G
)
Solving for G we
have
G
= 2
q
−
2
B
that allows one to depict the isoquant corresponding to any
q.
The marginal product of
B
is
MP
B
=
∆
q
∆
B
= 1
. The marginal rate of technical
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 Fall '08
 Idson
 Microeconomics, Marginal product, Economics of production, 1 g, 2 L

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