Management & Economics
posted by Lisel on .
a producer of light bulbs claims to have the folllowing production function: Q=10L*G.
a) what is the marginal product of labor? or glass?
b)Draw the relavant isoquant map and isocost line if the cost of labor is $4 per work-hour and the cost of glass is $4 per pound and 90 light bulds are to be produced.
What is the cost minimizing combination of glass and labor>
c) If Q were to increase to 160 light bulbs, would this firm exhibits constant, increasing or decreasing returns to scale. Explain.