Economics 4 10l 10 l 10 therefore the number of

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ECONOMICS 4 √10L= 10 L= 10, therefore, the number of workers required will be 10. K=10, L will be 10. The average productivity will be given by q/L = 1000/10= 100. Therefore, the average productivity of the puffed rice workers will be 100 boxes per hour per worker. If the production function is shift to Q= 150√KL a. The isoquant for the production function will be 1000 = 150√KL, √KL = 6.7 or KL = 44.89, therefore, the isoquant shifts from q 1 0 as shown in the graph above. b. When k=10, and the production function is Q= 150√KL, 1000 = 150√10L 1000/150 = √10L 6.7 = √10L, 44.87 =10L L = 4.487, therefore, this will be the number of workers required. The average productivity will be calculated as follows: L = 4.487, q/L = 1000/4.487 = 222.87 boxes per hour per worker.
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ECONOMICS 5 References Carbaugh, R. (2016). Contemporary economics: an applications approach . Routledge. Cowen, T., & Tabarrok, A. (2015). Modern principles of microeconomics . Macmillan International Higher Education. Varian, H. R. (2014). Intermediate Microeconomics: A Modern Approach: Ninth International Student Edition . Brantford, Ontario. WW Norton & Company.
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