Skip to Main Content
Managerial Economics and Strategy, 2/e
book

Managerial Economics and Strategy, 2/e

by Jeffrey M. Perloff, James A. Brander
February 2016
Beginner to intermediate content levelBeginner to intermediate
500 pages
33h 40m
English
Pearson
Content preview from Managerial Economics and Strategy, 2/e

Chapter 5

  1. 1.2 No, it is not possible for q=10, L=3, [&q|=|10, L|=|3,&] and K=6 [&K|=|6&] to be a point on this production function. Holding output and other inputs fixed, a production function shows the minimum amount needed of a given factor. As only 5 units of capital are needed to produce 10 units of output given that 3 units of labor are used, using 6 units of capital would imply excess capital. Such an input combination cannot be on the production function.

  2. 2.1 One worker produces one unit of output, two workers produce two units of output, and n workers produce n units of output. Thus, the total product of labor equals the number of workers: q=L. [&q|=|L.&] The total product of labor curve is a straight line with a slope of ...

Become an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
and much more.
Start your free trial

You might also like

Managerial Economics

Managerial Economics

Donald N. Stengel
Managerial Economics

Managerial Economics

Vanita Agarwal
Principles of Managerial Finance, 15th Edition

Principles of Managerial Finance, 15th Edition

Scott B. Smart, Chad J. Zutter, Lawrence J. Gitman

Publisher Resources

ISBN: 9780134472553