{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

# REC 3 - ECO303.02 Recitation#3 1 Laura's Internet Services...

This preview shows pages 1–3. Sign up to view the full content.

ECO303.02 Recitation #3 1) Laura's Internet Services firm can design computer systems according to the function y(K, L) = 3 K L , where K is the amount of Gigabyte storage she has available and L is the amount of labor hours she employs. Currently, Laura has 125 gigabytes of storage. Sketch the change in the marginal product of labor curve for Laura's firm for values of L = 1, 2, 3, 4, and 5, if she increases her gigabyte storage capacity to 216. Answer: We can approximate the change in the marginal product of labor as indicated in the following table. The marginal product of labor has increased when Laura added additional storage capacity. A sketch of the marginal product of labor is 2) Bridget's Brewery production function is given by y(K, L) = 2 KL , where K is the number of vats she uses and L is the number of labor hours. Does this production process exhibit increasing, constant or decreasing returns to scale? Holding the number of vats constant at 4, is the marginal product of labor increasing, constant or

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

View Full Document
ECO303.02 Recitation #3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### Page1 / 3

REC 3 - ECO303.02 Recitation#3 1 Laura's Internet Services...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online