{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

solutions3[1]

solutions3[1] - EC201 Fall 2007 Prof Jordi Jaumandreu...

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

View Full Document Right Arrow Icon
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 y-axis 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 x-axis (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
Background image of page 1

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

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}