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

question 15

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.Marginal product when 10 units of labor are employed is

• A)12,248
• B)13,142
• C)14,287
• D)15,984
• E)30,672

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Definitions:

Difference Threshold

The smallest change in stimulation that can be noticed by an individual half of the time, also referred to as the "just noticeable difference" (JND).

Applied Of Fechner's Law

The practical application of Fechner's principle, which relates the intensity of a physical stimulus to the intensity of the sensation it produces.

Weber Fraction

A psychological principle that quantifies the perception of change in a given stimulus proportionate to the original intensity of the stimulus.

Just-Noticeable Difference

The smallest difference in stimulus intensity that a specific sense can detect.