In the short-run, we assume that capital is a fioxed input and labor is a variab
ID: 1121464 • Letter: I
Question
In the short-run, we assume that capital is a fioxed input and labor is a variable input, so the firm can increase output only by increasing the amount of labor it uses. In the short-run, the firm's production function is q where q is output, L is workers, and K is the fixed number of units of capital fl, K Production Labor (L) Output (q) A specific equation for the production function is given by: 401 827 or, when K 24 10 q = (BL x 24) + 5L2 2,448 12 Use this equation to generate the values for output and fill in the table to the right. (Round your answers to the nearest integer) Enter your answer in each of the answer boxes. F3Explanation / Answer
Simple substituting the values into the equation = (8L * 24) + 5L^2 - (1/3)L^3
L = 6 q = (8*6*24) + 5(6)^2 - 1/3(6)^3 = 1260
L = 10 q = (8*10*24) + 5(100) - (1000/3) = 1920 + 500 - 334 = 2086