The production function for baseballs is Q = 12L + 8K. In the short run, capital is fixed at 2....
Question:
The production function for baseballs is Q = 12L + 8K. In the short run, capital is fixed at 2.
a. Draw the total product curve, the average product curve, and the marginal curve.
b. Does the firm have decreasing marginal cost? Explain.
Perfect Substitutes:
In economics, two inputs are perfect substitutes when one can replace another one at a fixed rate, without losing output. In this case, the profit-maximizing firm will tend to use only one input in production.
Answer and Explanation: 1
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View this answera. Total product = 12L + 8*2 = 16 + 12L. Average product is the total product divided by labor, i.e.,
- average product = (16 + 12L ) / L
- average...
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Marginal Cost: Definition, Equation & Formula
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Chapter 3 / Lesson 12
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What is marginal cost? Learn how to calculate marginal cost with the marginal cost formula. See the definition, behavior, and marginal cost examples.
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