Purchase Solution

Short-Run Production and Marginal and Average Product

Not what you're looking for?

Ask Custom Question

Consider the following short-run production function (where L = variable input, Q = Output): Q = 6L2 - 0.4L3

a. Determine the marginal product function (MPL)
b. Determine the average product function (APL)
c. Find the value of L that maximizes Q
d. Find the value of L at which the marginal product function takes on its maximum value
e. Find the value of L at which the average product function takes on its maximum value

Purchase this Solution
Solution Summary

This solution determines the marginal product function, the average product function, the value of L that maximizes quantity, the value of L at which the marginal product function takes on its maximum value, and the value of L at which the average product function takes on its maximum value.

Solution Preview

Q1. Consider the following short-run production function (where L = variable input, Q = Output): Q = 6L2 - 0.4L3

a. Determine the marginal product function (MPL)
Q=6L^2-0.4L^3
Marginal product of L=MPL=dQ/dL=12L-1.2L^2

b. Determine the average product ...

Solution provided by:
Lokesh Jain, MSc
Education
  • BEng (Hons) , Birla Institute of Technology and Science, India
  • MSc (Hons) , Birla Institute of Technology and Science, India
Recent Feedback
  • "Thank you"
  • "Really great step by step solution"
  • "I had tried another service before Brain Mass and they pale in comparison. This was perfect."
  • "Thanks Again! This is totally a great service!"
  • "Thank you so much for your help!"
Purchase this Solution
Free BrainMass Quizzes
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.

Economic Issues and Concepts

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

Basics of Economics

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

View More Free Quizzes
Related BrainMass Solutions

  • computing marginal product and average product of labor

    214438 Graphing Marginal Product and Average Product for three different types of production functions (linear, quadratic, cubic) Given algebraic equations, need to graph the marginal product and average product for linear short-run, quadratic short-run

  • Production Cost Analysis in the Short Run

    the marginal product of labor to increase and no effect on the average product of labor. the average product of labor to increase and no effect on the marginal product of labor.

  • Stages of Production - Law of diminishing Returns

    Marginal Product, Average Product and their optimum values are worked out by the use of calculus. In second part short discussion type questions are explained about Marginal Product, Average Product, Stages of Production.

  • Production curve

    There is too much labor relative to capital) 5) Explain why the firm's short run production has only one 'rational' stage of production There is only one rational stage of production because the average product and the marginal product

  • Isoquants, marginal rate and average product

    47488 Isoquants, marginal rate and average product Which is False and which is True?

  • Economics Concepts - Production and Cost

    When the long run marginal cost is above the long run average cost curve the average cost is increasing and when the long run marginal cost curve is below the average cost curve the average cost curve is falling. (618 words) References: Thomas J.

  • ECO 500 this is a study guide

    d) All of the above Question 8 The main difference between the short-run and the long-run production functions is that a) in the short run all inputs are fixed and in the long run all inputs are variable.

  • total output

    378090 Economic concepts are depicted The following is a hypothetical short-run production function: The following is a hypothetical short-run production function Hours of labor Total output Marginal product 0 ?

  • Production Process Multiple Choice Questions in Economics

    Which of the following relationships help determine the optimal amount of variable input (labor) in the short run? a. Marginal Product = Marginal Cost b. Average Product = Marginal Product c.

View More Related Solutions