Expert Answers

1. A certain production process employs only labor (L). Output (Q) is a function of labor given by the following relationship: (30 Points)      

Q = 600L² - 100L³

where MPL = 1200L - 300L²

(a) Determine the average product function for input L.

(b) Find the number of units of input L that maximizes the total product function.
(Hint: set MPL equal to zero and solve for L.)

(c) Find the number of units of input L that maximizes the average product function.
(Hint: set MPL equal to the APL equation found in part “a” and solve for L.)