If q1000 the production function will be 1000 100kl

Info icon This preview shows pages 3–5. Sign up to view the full content.

If q=1000, the production function will be 1000 = 100√KL 1000/100 = √KL, √KL =10 KL = 10 2 = 100, therefore, the isoquant for the production will be 100. A graph showing the isoquant for the production b. If K=10, to calculate how many workers are required to produce Q= 1000 Q= 100√10L 5 10 20 L K 20 10 5 q10 q0
Image of page 3

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

QUESTION-ANSWERS 4 1000 = 100√10L, √10L 1000/100 = 10 √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.
Image of page 4
QUESTION-ANSWERS 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.
Image of page 5
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern