Question

A pie shop has a production function given by Q = 30K1/3L1/3, where Q is the number of pies produced per hour, K is the number of ovens (which is fixed at 8 in the short run), and L is the number of employed workers. How many pies can be produced per hour with 27 workers in the short run?

Question 9 options:

	200
	150
	220
	180

Question 10 (2 points)

The production function for an automobile industry is given by Q = 2 K^1/2L^1/2, where Q is the number of automobiles produced per day, K is the number of machines, and L is the number of workers employed by the factory. Suppose that K is fixed at 100 and the rent for a unit of capital, r, is given by $20. Also, the wage for per worker, w, is $100. Find the total cost function.

Question 10 options:

	TC = 2000 + Q1/2/4
	TC = 2500 + Q/2
	TC = 2500 + Q1/2/4
	TC = 2000 + Q2/4

Question 11 (1 point)

Which situation will likely give rise to diminishing marginal product of labor?

Question 11 options:

	Hell’s Kitchen undertakes a massive expansion, doubling both the size of its kitchen and number of cooks.
	Chipotle, which has enough counter space for three cooks per shift, decides to hire a fourth cook per shift.
	Wired earphones manufacturers are going out of business because of increased competition from Bluetooth earphones manufactures.
	A landscaping firm replaces all of its self-propelled lawnmowers with push mowers.

Answer 1

1 (D) 180 units

Q = 30K1/3L1/3,

= 30 (8 ) 1/3 (27)1/3

= 30 (2)3*1/3 (3)3*1/3

= 30* 2* 3

=180

2. (D) TC = 2000 + Q2/4

= K* R+ L * W

= 100*20+ L* 100

= 2000+ q=2L^1/2

=2000+ (q/2)²

=2000+ Q²/4

3(B) chipotle, which has enough counter space for three cooks per shift, decides to hire a fourth cook per shift.

reason Chipotle already have three cooks per shift, hiring one more cook will not add utility to production of food it will cause diminishing marginal product of labor.