Consider the production function Q = 20K1/2L
1/2. The firm operates in the short run with 20 units of capital. (16
points)
a. The firm’s short-run production function is Q = ______________.
b. The average product of labor function is AP = _____________.
c. The marginal product of labor function is MP = ____________.
Now, let the wage be ₱500.00.
d. Derive AVC(Q).
e. When 160 units are produced, _____________ units of labor are employed, and the average
product is ____________. Average variable cost is ₱___________.
a. Derive SMC(Q).
