CHAPTER 6 PRODUCTION
Chapter 6: Production 71 With capital limited to 9 machine units, the production functions become Q = 30L0.5 and Q 2 = 37.37L0.4. To determine the production function with the highest marginal productivity of labor, consider the following table: L Q Firm 1 MP L Firm 1 Q Firm 2 MP L Firm 2 0 0.0 ___ 0.00 ___ 1 30.00 30.00 37.37 37.37
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