Blowdryer businessman Max Power is starting a new hairdryer business. Max estimates his production function to be q = KL0.5. Max has 60 units of capital (K = 60 ). Derive Max's MP and AP of labor for the current level of capital
What will be an ideal response?
The AP = q/L = 6/L0.5. The MP = dq/dL = 3/L0.5.
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