Elective microeconomics for business

microeconomics for businessTU Board 2081

Let Q = 14L + 7L^2 L^3 . Compute VMP L at P = Rs 10 and L = 5 units.

2

Answer

To compute the Value of the Marginal Product of Labor (VMP_L), we first find the Marginal Product of Labor (MPL) by differentiating the production function with respect to :

Substitute :

Now, multiply by the price to get :

Discussion

Loading…

More microeconomics for business questions

All microeconomics for business old questions