Q. 1. Short-term production function: Q = 50L + 6L2 - 0.5L3
a. When the law of diminishing returns does begin to take effect?
b. Calculate the value range of labor throughout phases 1, 2 and 3.
c. Suppose that each worker makes $ 10 an hour and works 40 hours for every week. How many workers we hire if the product price is $ 10. Suppose the price falls to $ 7.50. What would be a short-term impact on the production of the corporation? Illustrate what would be the long term?
2. Suppose the production function of the company is
Q = 7V - 0.5V2
V stands for the number of employees and Q stands for production working 8 hours a day
a. Develop a production plan from 1 to 10 V
b. Calculate the average and marginal products
c. Weekly hours worked are 40 and the product price is $ 5.00
d. Identify the three stages.