Refer to the Following:
a Firm Estimates Its Long-Run Production $$Q = - 0.0075 K ^ { - 3 } L ^ { 3 } + 12 K ^ { 2 } L ^ { 2 }$$

question 39

Multiple Choice

Refer to the following:
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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Definitions:

Gnome Molds

Molds used for creating gnome figurines, often employed in crafts, gardening decoration, or as part of a manufacturing process for garden ornaments.

Plaster

A building material used for coating walls and ceilings, made by mixing lime, sand, cement, and water.

Labor

The physical and mental effort used in the production of goods and services.

Positive Supply

A market condition where suppliers are willing to offer goods or services at a particular price level.