Problem:
The yacht Builder uses capital and labour to produce yachts as stated by the following production function Q = f (K
In the short run, the firm’s capital is fixed at k=10 units.
a) Find out the firm’s total product of labour curve?
b) Find out the firm’s average product of labour curve?
c) Find out the firm’s marginal product of labour curve?
d) At what level of labour employ do diminishing returns sets in for yacht builder?
e) At what level of labour employ is average product of labour is maximized?
f) At what level of labour employ is yacht producer’s output maximized in short run?