Posts by Vincy
Total # Posts: 2
Suppose the production function for widgets is given by: Q = KL - 0.8K^2 - 0.2L^2 where Q represents the quantity of widgets produced, K represents the annual capital input and L represents annual labor input. (a) For K = 10, what is the average productivity of labor equal to...
A firm uses only one variable input and faces the following Average Cost function: AC = Q^2 - 15Q + 48 Calculate the output level (Q) at which diminishing returns set in.