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Sam Produces Widgets According to the Production Function F(L)= 100L(1/2)

question 9

Essay

Sam produces widgets according to the production function F(L)= 100L(1/2).
i)What is Sam's average productivity of labour?
ii)What is Sam's marginal productivity of labour?
iii)Graph APL and MPL on a diagram. Show that MPL is lower than APL for all values of L.


Definitions:

Ledger

A book or computer file for recording and totaling economic transactions measured in terms of a monetary unit of account by account type.

Transposition

The accidental rearrangement of digits of a number. Example: 152 → 125.

Error

A mistake in recording transactions or in financial statements, often requiring adjustments or corrections.

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit columns to ensure a company's bookkeeping system is mathematically correct.

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