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Unformatted text preview: The familys harvest in thousands of bushels is represented by q. Assume that the family has signed contract with their neighbor to lease out all but 16 acres of their land. They are keeping these 16 acres in production. (7 points) What is the farms production function for this period? (7 points) 1) Production Function a) Three Equations i) Why q and not Q ii) Total Product (1) TP = q(X 1 ,X 2 ) iii) Marginal Product (1) MP 1 = q(X 1 ,X 2 )/ X 1 iv) Average Product (1) ATP 1 = q(X 1 ,X 2 )/X 1 (2) In common parlance, productivity refers to average productivity Answers TP = q = 8L 1/4 AP L = 8L-3/4 MP L = 2L-3/4 AP K = 2L 1/4 MP K = n/a q = L 1/3 (27) 2/3 = 9 L 1/3 = 90 L = 1,000 TP = 32 K 1/2...
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This note was uploaded on 04/10/2008 for the course ECON 3150 taught by Professor Tittle during the Spring '08 term at Georgia Institute of Technology.
- Spring '08