Calculate inputs, calculate labor, production functions

1. Could the isoquants corresponding to two different levels of output ever cross? Explain.

2. A firm uses the inputs of fertilizer, labor, and hothouses to produce roses. Suppose that when the quantity of labor and hothouses is fixed, the relationship between the quantity of fertilizer and the number of roses produced is given by the following table:
(attached)

a) What is the average product of fertilizer when 4 tons are used?
b) What is the marginal product of the sixth ton of fertilizer?
c) Does this total production function exhibit diminishing marginal returns? If so, over what quantities of fertilizer do they occur?

5. Suppose that a firm's production function is given by Q = KL + K, with MP_x = L + 1 and MP_L = K . At point A, the firm uses K = 3 units of capital and L = 5 units of labor. At point B, along the same isoquant, the firm would only use 1 unit of capital.

a) Calculate how much labor is required at point B.
b) Calculate the Marginal rate of technical substitution (MRTS) at point A and B respectively.

6. For the production function Q = 6L^2 — L^3, fill in the following table and state how much the firm should produce so that:
a) average product is maximized
b) marginal product is maximized
c) total product is maximized
d) average product is zero

Answer:
1) No, isoquants can never cross. For example, If we look at the diagram with two isoquants for two levels of output Q1 and Q2 where Q2>Q1. Let the ...

Solution Summary

The expert calculates the inputs, calculates labor and production functions.

... Solution describes the steps for calculating variable costs, fixed ... a. Calculate the marginal and average variable product of each unit of labor input. ...

... While calculating the substitution effect we are assuming ... the total cost function and then calculates the elasticity ... 2.2 Calculate the elasticity of total cost ...

... as additional units of variable inputs are combined ... Solution describes the steps for calculating average and ... Based on the information, calculate the averae ...

... and MPPK/MRCK = 10, what is the least-cost input-combination of labor and capital ... a firm's output at various levels of employment (L) to calculate: ...

... A. Calculate the incremental profit that McFarlancl-Adler would earn by ...LABOR INPUT/OUTPUT ANALYSIS. Labor Output Marginal product average produce 0 0 0 0 1 10 ...

... The inputs are hired in perfectly competitive markets, and the firm faces input costs as ... a. Calculate the following: i. Marginal product of labor. ii. ...

... are at least three methods to calculate A, the ... factor productivity for the 1993-2015 dataset is calculated. ... an outline and example of calculating total factor ...

...labor MRPL=100*MPL We have calculated above that ... Solution describes the steps to calculate average product ... marginal product and optimal combination of inputs. ...

...labor of the wage Note: This I have calculated with respect ... K and L Once this is done calculate the income ... for the manufacturer is given with inputs as number ...