1. Suppose the production function of a firm is given as: Q = 5L + 10L? – 2L a. Find the number of labors that would yield maximum values of TP, AP, and MP? b. Base on the results on "a", provide a range of values that would reflect the three stages of production. 2. Consider the following graphical presentation as the optimal combination of a firm: Capital IQ OL Labor Construct a single graphical presentation indicating the following conditions: a. Price of Labor increases but capital still the same. b. Two months after, both price of inputs declines proportionately. c. Five months after, the price of capital increases while the labor still the same. d. Expansion path. Expert Answer Introduction Note: Since more than one questions are asked, we are going to answer first question as per Bartleby policy. Kindly post the other question separately. We are going to use first order, second order conditions to answer this question. Answer A) Given production function Q = 5L + 10L2 -2L3 This is also referred as Total Product
1. Suppose the production function of a firm is given as: Q = 5L + 10L? – 2L a. Find the number of labors that would yield maximum values of TP, AP, and MP? b. Base on the results on "a", provide a range of values that would reflect the three stages of production. 2. Consider the following graphical presentation as the optimal combination of a firm: Capital IQ OL Labor Construct a single graphical presentation indicating the following conditions: a. Price of Labor increases but capital still the same. b. Two months after, both price of inputs declines proportionately. c. Five months after, the price of capital increases while the labor still the same. d. Expansion path. Expert Answer Introduction Note: Since more than one questions are asked, we are going to answer first question as per Bartleby policy. Kindly post the other question separately. We are going to use first order, second order conditions to answer this question. Answer A) Given production function Q = 5L + 10L2 -2L3 This is also referred as Total Product
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Transcribed Image Text:1. Suppose the production function of a firm is given as:
Q = 5L + 10L? – 2L
a. Find the number of labors that would yield maximum values of TP, AP, and
MP?
b. Base on the results on "a", provide a range of values that would reflect the
three stages of production.
2. Consider the following graphical presentation as the optimal combination of a
firm:
Capital
IQ
OL
Labor
Construct a single graphical presentation indicating the following conditions:
a. Price of Labor increases but capital still the same.
b. Two months after, both price of inputs declines proportionately.
c. Five months after, the price of capital increases while the labor still the
same.
d. Expansion path.
Transcribed Image Text:Expert Answer
Introduction
Note: Since more than one questions are asked, we are going to answer first question as per Bartleby policy.
Kindly post the other question separately.
We are going to use first order, second order conditions to answer this question.
Answer A)
Given production function
Q = 5L + 10L2 -2L3
This is also referred as Total Product
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