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Assignment 2 M2

The document analyzes production output (Q) using a production function with capital (K) and labor (L) as inputs. It provides Q values for varying levels of K and L. The summary identifies the levels of L where average and marginal product of labor are equal, where maximum Q is reached, and where average product of labor is maximum.

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Kerjaan Fira
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25 views

Assignment 2 M2

The document analyzes production output (Q) using a production function with capital (K) and labor (L) as inputs. It provides Q values for varying levels of K and L. The summary identifies the levels of L where average and marginal product of labor are equal, where maximum Q is reached, and where average product of labor is maximum.

Uploaded by

Kerjaan Fira
Copyright
© © All Rights Reserved
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Production Function: 𝑄=600𝐾^2 𝐿^2−𝐾^3 𝐿^3

K L Delta L Q Delta Q
10 0 0 0 0
10 2 2 232000 232000
10 4 2 896000 664000
10 6 2 1944000 1048000
10 8 2 3328000 1384000
10 10 2 5000000 1672000
10 12 2 6912000 1912000
10 14 2 9016000 2104000
10 16 2 11264000 2248000
10 18 2 13608000 2344000
10 20 2 16000000 2392000
10 22 2 18392000 2392000
10 24 2 20736000 2344000
10 26 2 22984000 2248000
10 28 2 25088000 2104000
10 30 2 27000000 1912000
10 32 2 28672000 1672000
10 34 2 30056000 1384000
10 36 2 31104000 1048000
10 38 2 31768000 664000
10 40 2 32000000 232000
10 42 2 31752000 -248000
10 44 2 30976000 -776000
10 46 2 29624000 -1352000
10 48 2 27648000 -1976000

1 What is the level of L at which the APL and MPL are equal?
Answer: The level of L at which the APL and MPL are equal is 2
2 What is the level of L for which the maximum Q level is reached?
Answer: The level of L at which the maximum Q level is reached is 40
3    What is the level of L for which the level of APL is maximum?
Answer: The level of L at which the maximum APL level is reached is 30
4 Put MPL and APL on the same graph.

APL and MPL Graph


2500000

2000000

1500000
APL and MPL Graph
2500000

2000000

1500000

1000000

500000

0
0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 44 46 48
-500000

-1000000

APL MPL
APL MPL
0 0
116000 116000 ® APL = MPL
224000 332000
324000 524000
416000 692000
500000 836000
576000 956000
644000 1052000
704000 1124000
756000 1172000
800000 1196000
836000 1196000
864000 1172000
884000 1124000
896000 1052000
900000 956000 ® Max APL
896000 836000
884000 692000
864000 524000
836000 332000
800000 116000 ® Max Q
756000 -124000
704000 -388000
644000 -676000
576000 -988000
8 40 42 44 46 48

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