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Unformatted text preview: Econ 100A - Worksheet #10 Production Functions Exercise 1 To study the quality of a judiciary system, one possible figure to consider is the average number of month required between the filing of a complaint and the final ruling. This figure may depend on the number of judges and on the effort made by the judge, that can be thought of as an increasing function of the judges wage. Consider the following data concerning this relationship, where the number in the cells is the average duration of a case in months: Monthly wage/Number of judges 1 2 3 4 5 6 2000 24 20 14 12 11 10 2100 24 21 16 12 10 7 2200 22 18 12 11 10.5 10 1) Considering that the shorter the processing of a case, the better, compute the marginal productivity of labor (number of judges) and capital (monthly wage) (a unit of wage is here $100). 2) Give the isoquants of that technology. 3) Indicate on the table the situations where it is better to hire a new judge, and the situations where it is better to raise judges wages.wages....
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This note was uploaded on 07/09/2010 for the course ECON 100A taught by Professor Woroch during the Fall '08 term at University of California, Berkeley.
- Fall '08