A workshop uses a fixed amount of capital $K = 4$ units and variable labour $L$. Its production function (output in units) is $Q = 5L - 0.5L^{2} + 2K$. Determine the labour input that maximises output, the maximum output level, and the marginal product of labour at that point.

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Accepted Answer

Labour = 5 units; maximum output = 20.5 units; marginal product at that point = 0

Waec Model Questions Vol1 2019 Economics Question 25

A workshop uses a fixed amount of capital \(K = 4\) units and variable labour \(L\). Its production function (output in units) is \(Q = 5L - 0.5L^{2} + 2K\). Determine the labour input that maximises output, the maximum output level, and the marginal product of labour at that point.

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