Labor Productivity: What It Is, Calculation, and How to Improve It
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SOLVED: A manufacturer estimates that the annual output at a certain factory is given by Q(K,L) = 39K^0.7L^0.3 units, where K is the capital expenditure in thousands of dollars and L is the size of the labor force in worker-hours. Suppose that the current capital expenditure is 290,000 and the labor level is 510 worker-hours.a. Find the current marginal productivity of capital QK. ANSWER:b. Find the current marginal productivity of labor QL. ANSWER:c. Should the manufacturer consider adding a un
SOLVED: A manufacturer estimates that the annual output at a certain …
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Suppose that labor is the only input used by a perfectly competitive firm. The firm's production function is as follows: a. Calculate the marginal product for each additional worker. b. Each unit of output sells for 0. Calculate the value of the marginal product of each worker. c. Compute the demand schedule showing the number of workers hired for all wages from zero to 00 a day. d. Graph the firm's demand curve. e. What happens to this demand curve if the price of output rises from 0 to 2 per u
Suppose that labor is the only input used by a perfectly competitive fir…
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