Assignment:
Wagner Tool produces output according to Q = 2K1/2L1/2, where K is the amount of capital used and L is the amount of labor employed. Wagner is constrained in the short run to use 9 units of capital.
a) How much labor is needed to make 48 units of output?
b) Calculate the marginal product of labor function when K=9.
c) Calculate the average product of labor function when K=9.
d) Describe how you would draw a graph for these functions. What is on your x-axis? What is on your y-axis? How would you describe where "diminishing marginal productivity" occurs? (Feel free to draw a graph of the answers from b) and c) to inform your answer.)