The Production Function for Laser Eye Surgery Is Given by Q

question 140

Essay

The production function for laser eye surgery is given by Q = 20K^0.5L^0.5, where Q is the number of laser eye surgeries performed per day, K is the number of eye surgery machines (which is fixed at 2 in the short run), and L is the number of employees.
a. Write the equation for the firm's short-run production function.
b. Write the equation for the firm's short-run average product of labor function.
c. Calculate the average product of labor for L = 9 and L = 16.
d. Calculate the marginal product of labor for L = 1, L = 2, and L = 3.

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Definitions:

Referent Power

A form of influence that one individual has over another based on the strength of their relationship or the charisma and likability of the person who holds power.

Coercive Power

The ability of a person or group to enforce compliance through threats or punishment.

Exchange Orientation

A perspective in relationships focusing on the balance of rewards and costs between the parties involved, often in the context of social or work-related interactions.

Expert Power

The influence one possesses as a result of experience, special skill, or knowledge, which others see as valuable.