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    Latihan Ch.6

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    diana sartika
    This document contains 5 questions about production functions and their properties. Question 1 asks about calculating marginal product of labor and determining diminishing returns from a production function table. Question 2 asks about isoquants and marginal rates of technical substitution for different production scenarios. Question 3 asks about calculating marginal product of capital given marginal product of labor and marginal rate of technical substitution. Questions 4 and 5 analyze different production functions for increasing, constant, or diminishing returns to scale and compare marginal products of factors between companies.

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    Latihan Ch.6

    Uploaded by

    diana sartika
    108 views1 page
    This document contains 5 questions about production functions and their properties. Question 1 asks about calculating marginal product of labor and determining diminishing returns from a production function table. Question 2 asks about isoquants and marginal rates of technical substitution for different production scenarios. Question 3 asks about calculating marginal product of capital given marginal product of labor and marginal rate of technical substitution. Questions 4 and 5 analyze different production functions for increasing, constant, or diminishing returns to scale and compare marginal products of factors between companies.

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    Latihan Buku Pyndick/Mankiw

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    This document contains 5 questions about production functions and their properties. Question 1 asks about calculating marginal product of labor and determining diminishing returns from a production function table. Question 2 asks about isoquants and marginal rates of technical substitution for different production scenarios. Question 3 asks about calculating marginal product of capital given marginal product of labor and marginal rate of technical substitution. Questions 4 and 5 analyze different production functions for increasing, constant, or diminishing returns to scale and compare marginal products of factors between companies.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    108 views1 page

    Latihan Ch.6

    Uploaded by

    diana sartika
    This document contains 5 questions about production functions and their properties. Question 1 asks about calculating marginal product of labor and determining diminishing returns from a production function table. Question 2 asks about isoquants and marginal rates of technical substitution for different production scenarios. Question 3 asks about calculating marginal product of capital given marginal product of labor and marginal rate of technical substitution. Questions 4 and 5 analyze different production functions for increasing, constant, or diminishing returns to scale and compare marginal products of factors between companies.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 1

    1. Suppose a chair manufacturer is producing in the short run (with its existing plant and equipment).

    The
    manufacturer has observed the following levels of production corresponding to different numbers of workers:

    Number of Workers Number of Chairs


    1 10
    2 18
    3 24
    4 28
    5 30
    6 28
    7 25

    a. Calculate the marginal and average product of labor for this production function.
    b. Does this production function exhibit diminishing returns to labor? Explain.
    c. Explain intuitively what might cause the marginal product of labor to become negative.

    2. For each of the following examples, draw a representative isoquant. What can you say about the marginal rate
    of technical substitution in each case?

    a. A firm can hire only full-time employees to produce its output, or it can hire some combination of full-time
    and part-time employees. For each full-time worker let go,
    the firm must hire an increasing number of temporary employees to maintain the same level of output.
    b. A firm finds that it can always trade two units of labor for one unit of capital and still keep output
    constant.
    c. A firm requires exactly two full-time workers to operate each piece of machinery in the factory.

    2. The marginal product of labor in the production of computer chips is 50 chips per hour. The marginal rate of
    technical substitution of hours of labor for hours of machine capital is 1/4. What is the marginal product of
    capital?

    4. Do the following functions exhibit increasing, constant, or decreasing returns to scale? What happens to the
    marginal product of each individual factor as that factor is increased and the other factor held constant?
    1
    a. q  3L  2 K b. q  (2 L  2 K ) 2 c. q  3LK 2
    1 1 1
    d. q  L2 K 2 e. q  4 L2  4 K

    5. The production function for the personal computers of DISK, Inc., is given by q  10K0.5L0.5, where q is the
    number of computers produced per day, K is hours of machine time, and L is hours of labor input. DISK’s
    competitor, FLOPPY, Inc., is using the production function
    q  10K0.6L0.4.
    a. If both companies use the same amounts of capital and labor, which will generate more output?
    b. Assume that capital is limited to 9 machine hours, but labor is unlimited in supply. In which company is
    the marginal product of labor greater? Explain.

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