The Manager of a National Retailing Outlet Recently Hired an Economist

question 142

Essay

The manager of a national retailing outlet recently hired an economist to estimate the firm's production function.Based on the economist's report,the manager now knows that the firm's production function is given by $Q = K ^ { 1 / 2 } L ^ { 1 / 2 }$ and that capital is fixed at 1 unit.
a.Calculate the average product of labor when 9 units of labor are utilized.
b.Calculate the marginal product of labor when 9 units of labor are utilized.
c.Suppose the firm can hire labor at a wage of $10 per hour and output can be sold at a price of $100 per unit.Determine the profit-maximizing levels of labor and output.
d.What is the maximum price of capital at which the firm will still make nonnegative profits?

---

Definitions:

Acrylic Nails

Artificial extensions applied over the natural fingernails, often for cosmetic purposes.

Clinical Area

This term refers to spaces or environments within healthcare facilities designated for patient care and medical treatments.

Scrubs

A type of protective clothing designed to be worn by medical personnel during surgical procedures to maintain a sterile surgical environment.

Clean Scrubs

Clean scrubs are freshly washed and sanitized uniforms worn by healthcare professionals to maintain hygiene and reduce the risk of contamination in healthcare settings.