1 answer

Consider the following production function q= 24LK + 512-6 Assume capital is fixed at K =25....

Question:

Consider the following production function q= 24LK + 512-6 Assume capital is fixed at K =25. In what range of employment does
Consider the following production function q= 24LK + 512-6 Assume capital is fixed at K =25. In what range of employment does the marginal product of labor exhibit positive but diminishing marginal returns? The marginal product of labor is diminishing but positive when L ranges from to . (Enter numeric responses using integers)

Answers

Ans: We have production function:

It is positive till:

gives: L < 300

MPL is diminishing when:

gives: L > 5

Ans: Range: 5 to 300.

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