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

question 16

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,average product of labor begins to diminish.

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

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