Suppose that a firm's production function is given by Q=20L-2L^2 of the price of produc of labor Birr 20 what will be the marginal physical product of the second worker employed?

Question

A. 16
B. 12
C. 18
D. 40

Answer 1

To find the marginal physical product (MPP) of the second worker employed, we need to take the derivative of the production function with respect to labor (L), and then evaluate it when L = 2.

Q = 20L - 2L^2

Taking the derivative with respect to L:

dQ/dL = 20 - 4L

Now let's substitute L = 2 into this derivative equation:

dQ/dL = 20 - 4(2)
= 20 - 8
= 12

Therefore, the marginal physical product (MPP) of the second worker employed is 12. Hence, the answer is B. 12.