A tomato producer has the following Cobb-Douglas production function: 𝑄=8.9𝐾.93 𝐿.31 What is th

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answerhappygod
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A tomato producer has the following Cobb-Douglas production function: 𝑄=8.9𝐾.93 𝐿.31 What is th

Post by answerhappygod »

A tomato producer has the following Cobb-Douglas
production function:
๐‘„=8.9๐พ.93 ๐ฟ.31
What is the functional form for the marginal product of
capital?
What is the functional form for the marginal product of
labor?
What returns to scale does this production function have? How do
you know?
Assume capital measures field size and is fixed in this case at
5 acres. How many labor-hours are needed to harvest 54 pounds of
tomatoes per acre?
Now assume that the cost of labor is $14.00/hour, and they can
retail a pound of tomatoes to a restaurant for $10/lb. What is the
optimal amount of labor the producer should use?
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