Question

Determine which of the following statement below are correct. Multiple statements may be correct. If you...

Determine which of the following statement below are correct. Multiple statements may be correct.

If you are asked to evaluate an approximate variable, you should consider a 10% tolerance for the variable (plus or minus 10%).

A firm's production function is equal to

Q = K^(1/2) L^(1/2)

and the Marginal Product of Labor is equal to:

MP(L) = 1/2 * K^(1/2) * L^(-1/2)

You know that capital (K) is currently fixed at 100 units.

When labor increases from 49 to 81 units, the Marginal Product of Labor declines from 0.71 to 0.55.

A firm's production function is equal to

Q = K^(1/2) L^(1/2)

and the Marginal Product of Labor is equal to:

MP(L) = 1/2 * K^(1/2) * L^(-1/2)

You know that capital (K) is currently fixed at 100 units.

When labor increases from 49 to 81 units, the Marginal Product of Labor declines from 0.71 to 0.55.

As a result, the Average Product of Labor will increase when labor increases from 49 to 81 units.

A firm's production function is equal to

Q = K^(1/2) L^(1/2)

and the Marginal Product of Labor is equal to:

MP(L) = 1/2 * K^(1/2) * L^(-1/2)

Capital is currently fixed at 81 units. The firm currently employs 256 units of labor. Given that the firm can sell its production at $50 a unit, it should offer to pay its workers approximately $14 an hour.

A firm's production function is equal to

Q = K^(1/2) L^(1/2)

and the Marginal Product of Labor is equal to:

MP(L) = 1/2 * K^(1/2) * L^(-1/2)

Capital is currently fixed at 256 units. The firm currently employs 100 units of labor. Given that the firm can sell its production at $50 a unit, it should offer to pay its workers approximately $28 an hour.

Homework Answers

Answer #1

Two statements are correct

1) A firm's production function is equal to Q = K^(1/2) L^(1/2) and the Marginal Product of Labor is equal to: MP(L) = 1/2 * K^(1/2) * L^(-1/2) You know that capital (K) is currently fixed at 100 units. When labor increases from 49 to 81 units, the Marginal Product of Labor declines from 0.71 to 0.55.

3) A firm's production function is equal to Q = K^(1/2) L^(1/2) and the Marginal Product of Labor is equal to: MP(L) = 1/2 * K^(1/2) * L^(-1/2) Capital is currently fixed at 81 units. The firm currently employs 256 units of labor. Given that the firm can sell its production at $50 a unit, it should offer to pay its workers approximately $14 an hour.

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