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Homework answers / question archive / Consider the short run production function Q = 10L - 0
Consider the short run production function Q = 10L - 0.5L2 where labor (L) is the only variable input. What is the average product when labor equals 4?
a.8
b.6
c.12
d.32
Reason:
Given : Q = 10L - 0.5L^2 ---> Production Function
Average Product = Q/ L
Dividing the production function by L on both sides we have,
Q/L = 10 - 0.5L
AP = 10 - 0.5L
When L = 4
AP = 10 - 0.5(4)
AP = 10 - 2 = 8
Hence the output per labor when 4 labors are employed is equal to 8.
