A firm can manufacture a product according to the production function Q = F(K, L) = KO.50LO.50. (a) What is the average product of labor, APL, when the level of capital is fixed at 64 units and the...

M2

Extracted text: A firm can manufacture a product according to the production function Q = F(K, L) = KO.50LO.50. (a) What is the average product of labor, APL, when the level of capital is fixed at 64 units and the firm uses 9 units of labor? (b)What is the marginal product of labor, MPL, when the amount of capital is fixed at 81 units? (c) Suppose capital is fixed at 64 units. If the firm can sell its output at a price of $100 per unit of output and can hire labor at $50 per unit of labor, how many units of labor should the firm hire in order to maximize profits?