Explore BrainMass

Explore BrainMass

    Calculus and functions for production and workers

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Production function: Q=25LK
    Q = quantity produced in 1 month
    L = number of workers with monthly wage of $3,000 each
    K = number of machines with monthly rental of $6,000 each

    there are 25 workers and 40 machines (assume perfect divisibility between labor & machines)

    a. what is current average product of labor?
    what is current marginal product of machines?
    (assume one unit increase in machines)

    b. does production function display increasing, decreasing or constant returns
    of scale?

    c. what is total cost of production for one month?
    what is the average cost to produce one unit?
    assuming number of machines does not change, what is marginal cost
    of producing one additional unit?

    © BrainMass Inc. brainmass.com October 2, 2020, 12:12 am ad1c9bdddf

    Solution Summary

    This solution goes through concepts within the context of business calculus.