Suppose the production function for ‘chilliz heaven’ during a particular period can be represented by Q=FK,L=600K2L2-K3L3...

Suppose the production function for ‘chilliz heaven’ during a particular period can be represented by Q=FK,L=600K2L2-K3L3

Suppose capital in the short run is fixed at 10

Derive the short run production function? (1 mark)
Derive the marginal product of labour function (1 mark)
Derive average product of labour equation (1 mark)
Solve for the quantity of labour where diminishing marginal returns of labour set in
Solve for the quantity of labour that maximizes output (2MARKS)
Calculate the maximum output (1 mark)
Solve for the units of labour which maximizes average product of labour (2MARKS)
Prove that at the amount of labour (in g above) the value for average product is equal to marginal product of labour. (2MARKS)

Expert Solution

Rahul Sunny answered 1 year ago

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