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Economics

Q. Suppose a firm's production function is: q=2KL^2-L^3

And its quantity of capital is fixed at K=6 in the short-run.

a. Find the firm's short-run production function.
b. Use the short-run production function to write the firm's total product, marginal product of labor, and average product of labor as functions of L.
C. Does the law of diminishing marginal returns apply to this firm's production process? If so, explain why and find the quantity of labor at which diminishing marginal returns set in. If not, explain why no.
D. Would the law of diminishing marginal returns apply if the firm's production functions where: q=2KL^2.

Why or why not?

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M9156795

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