Given the production function Q = min {4K,3L},what is the average product of capital when 8 units of capital and 16 units of labor are used?
A) 16
B) 2
C) 4
D) 32

Question

Quizplus · Accepted Answer

The average product of capital is Q/K. When 8 units of capital and 16 units of labor are used, Q = min {4K,3L} = min {4(8),3(16)} = min {32,48} = 32. Therefore, the average product of capital is Q/K = 32/8 = 4.

Given the Production Function Q = Min {4K,3L},what Is the Average