A Firm Estimates Its Long-Run Production Function to Be $Q = - 0.0075 K ^ { 3 } L ^ { 3 } + 12 K ^ { 2 } L ^ { 2 }$

question 7

Multiple Choice

A firm estimates its long-run production function to be $Q = - 0.0075 K ^ { 3 } L ^ { 3 } + 12 K ^ { 2 } L ^ { 2 }$ Suppose the firm employs 12 units of capital.At _______ units of labor,marginal product of labor begins to diminish.

• A)32.21
• B)44.44
• C)66.67
• D)76.66
• E)82.27

Understand the concepts of average total, average variable, and average fixed costs.

Describe the relationship between marginal cost and marginal product.

Calculate total fixed costs from given average total and average variable costs.

Understand the concept of marginal cost and its relationship with average costs.