Ed's building company has the following production function
q = 20L - L²
where q is the number of houses built and L is the quantity of labor Ed employs.
a.Derive the MP and AP.
b.For what values of L is the MP0? For what values of L is the MP diminishing?
c.Draw the MP and AP on a graph.

Question

Ed's building company has the following production function
q = 20L - L²
where q is the number of houses built and L is the quantity of labor Ed employs.
a.Derive the MP and AP.
b.For what values of L is the MP>0? For what values of L is the MP diminishing?
c.Draw the MP and AP on a graph.

Quizplus · Accepted Answer

The Answer of Ed's building company has the following production function
q = 20L - L²
where q is the number of houses built and L is the quantity of labor Ed employs.
a.Derive the MP and AP.
b.For what values of L is the MP>0? For what values of L is the MP diminishing?
c.Draw the MP and AP on a graph.

Ed's Building Company Has the Following Production Function