9.2 9.3 (p.316)

9.2 9.3 (p.316) - Quiz 6 Solutions Jake Zhao 9.2 a We are...

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Quiz 6 Solutions Jake Zhao * October 29, 2010 9.2) a. We are given that k = 10 . TP l = - 0 . 2 l 2 + 10 l - 80 AP l = TP l l = - 0 . 2 l + 10 - 80 l To ﬁnd the maximum of AP l , we should take the derivative of AP l with respect to l . ∂AP l ∂l = - 0 . 2 + 80 l 2 = 0 = l = 20 TP l ± ± ± ± l =20 = - 0 . 2 × 20 2 + 10 × 20 - 80 = 40 10 15 20 25 30 35 40 0 5 10 15 20 25 30 35 40 45 Labor Total Output Total Productivity of Labor at k=10 10 15 20 25 30 35 40 0 0.2 0.4 0.6 0.8 1 1.2 1.4 1.6 1.8 2 Labor Average Output Average Productivity of Labor at k=10 b. MP l = ∂TP l ∂l = - 0 . 4 l + 10 MP l = 0 = - 0 . 4 l + 10 = l = 25 10 15 20 25 30 35 40 -6 -4 -2 0 2 4 6 Labor Marginal Output Marginal Productivity of Labor at k=10 10 15 20 25 30 35 40 -5 0 5 10 15 20 25 30 35 40 45 Labor Output TPL, APL, and MPL at k=10 TPL APL MPL * Department of Economics, University of Texas at Austin 1

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c. TP l = - 0 . 2 l 2 + 20 l - 320 for k = 20 AP l = TP l l = - 0 . 2 l + 20 - 320 l To ﬁnd the maximum of AP l , we should take the derivative of
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This note was uploaded on 06/15/2011 for the course ECO 420K taught by Professor D during the Fall '10 term at University of Texas.

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9.2 9.3 (p.316) - Quiz 6 Solutions Jake Zhao 9.2 a We are...

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