The ABC Corporation produces just one product, widgets. The company’s new economist has calculated a short-run production function as follows:

Technology and Production Theory

Q = 7L + 0.6L² – 0.1L³

Where Q is the number of widgets produced per day and L is the number of production workers working an eight-hour day.

Develop a production schedule with L equaling 1 to 10.

Calculate the Average and Marginal Product.

Solutions

Expert Solution

Q= 7L + 0.6L² -0.1L³

MPL =7 + 1.2L -0.3L²

APL = Q/L = 7 +0.6L -0.1L²

L	Q	APL=Q/L	MPL= Change in Q
1	7.5	7.5	-
2	(14+2.4-0.8)=15.6	7.8	8.1
3	(15+5.4-2.7)=17.7	5.9	2.1
4	(28+9.6-6.4)=31.2	7.8	13.5
5	(35+15-12.5)=37.5	7.5	6.3
6	(42+21.6-21.6)=42	7	4.5
7	(49+29.4-34.3)=44.1	6.3	2.1
8	(56+38.4-51.2)= 43.2	5.4	-0.9
9	(63+48.6-72.9)= 38.7	4.3	-4.5
10	(70+60-100)= 30	3	-8.7

Rahul Sunny answered 1 year ago

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