Purchase Solution

marginal product of labor, MPL,

Not what you're looking for?

Ask Custom Question

Given the following production function

Q = F(K,L) = K^3/4 L^1/4

a) find an expression for the marginal product of labor, MPL, when the amount of capital is fixed at 16 units.

b) Suppose capital is fixed at 16 units. If the firm can sell its output at a price of $100 per unit and can hire labor at $25 per unit, how many units of labor should the firm hire in order to maximize profits?

Purchase this Solution

Solution Summary

Marginal product of labor, MPL, is determined.

Solution Preview

Given the following production function

Q = F(K,L) = K^3/4 L^1/4

a) find an expression for the marginal product of labor, MPL, when the amount of capital is fixed at 16 units.
You know that .
Now, you want the MPL when amount of capital is fixed at 16 units. Based on your equation, define K to be 16. So, Q ...

Purchase this Solution


Free BrainMass Quizzes
Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.