2. Assume the Production Function for Hamburgers is Q = 4L^.50K.^33. where Q is the quantity of hamburgers, L is the number of workers employed and K is number of grills.
a. What is the quantity of hamburgers produced when the company employs 64 workers & 36 machines?
b. Continue to assume the input mix given above—what is the marginal product of labor? Note that K is fixed when we calculate the marginal product of Labor.
c. In one paragraph, interpret these numbers.
d. Does Hamburger production function display increasing, decreasing, or constant returns to scale? Would your answer change if the production function were to be Q = L^.66K^.50? If yes, what would it be (increasing, decreasing, or constant returns to scale)?
a) Substituting 64 and 36 for L and K in the Production Function, the Q of hamburgers produced is 104.41
With K held constant, MPL is the derivative of the Production Function with respect ...
This solution shows how to calculate quantity of production, formula of marginal product of labor and specific input mix, and how to determine if the production function is increasing, decreasing or constant.