Question
The cost function for an enterprise has the following form:
TC = 10L + 20K
The production function has the form: 4 ln L + 10 K 1/2
a. Derive the mathematical forms of the marginal and average products of capital and
labor. How is the marginal product of labor affected by changes in capital?
b. Describe the production position and combinations of inputs for when total costs are
equal to 300 and 700.
TC = 10L + 20K
The production function has the form: 4 ln L + 10 K 1/2
a. Derive the mathematical forms of the marginal and average products of capital and
labor. How is the marginal product of labor affected by changes in capital?
b. Describe the production position and combinations of inputs for when total costs are
equal to 300 and 700.