The production function. Choose the right answer and explain how you arrive at t
ID: 2505820 • Letter: T
Question
The production function. Choose the right answer and explain how you arrive at this answer.
For:
Q
=
f(L)
=
800L + 200 L2 - 0.02 L3
Where:
Q
=
Output in units
L
=
Labor units employed
a. Begins to exhibit diminishing returns to labor at L = 5000.
b. Enters stage 2 at L = 3333.
c. Enters stage 3 at L = 5000.
d. None of the above statements are accurate.
For:
Q
=
f(L)
=
800L + 200 L2 - 0.02 L3
Where:
Q
=
Output in units
L
=
Labor units employed
Explanation / Answer
as dQ/dL = 800+400L-0.06L^2
=> dQ/dL =0 is not at L= 3333 or 5000
so ans is none of the above are accurate
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