132k views
4 votes
What does the function G(L, c) = 2 represent in the con of production?

a. Capital investment
b. Labor and cost factors
c. Production output
d. Fixed fond APL
Which variables are assumed to be fixed in the production function G(L, c) = 2?

a. Labor only
b. Capital only
c. Both labor and capital
d. None of the above
What does APL stand for in the production function?

a. Average Production Level
b. Average Productive Labor
c. Average Production Law
d. Average Physical Labor
What does MP2 represent in the production function G(L, c) = 2?

a. Marginal Product of Labor
b. Marginal Production Level
c. Marginal Product of Capital
d. Marginal Production Law

User Reutsey
by
7.1k points

1 Answer

5 votes

Final answer:

The function G(L, c) = 2 signifies fixed production output with both labor and capital fixed. APL refers to Average Physical Labor. MP2 likely refers to either Marginal Product of Labor or Marginal Product of Capital, depending on context which is not provided.

Step-by-step explanation:

The function G(L, c) = 2 in the context of production represents fixed production output. This is an aggregate production function where output is constant regardless of variations in labor (L) or capital (c). In this case, it's indicating that the production output is fixed at a value of 2, which could pertain to any homogenous unit of output, such as goods produced.

As the function G(L, c) = 2 implies a constant output, the variables that are assumed to be fixed are both labor and capital. This means that changes in labor or capital won't affect the output, which remains constant at 2.

APL stands for Average Physical Labor in the context of a production function. APL is used to assess the average output per unit of labor employed.

As for MP2, without additional context, it's unclear what this represents. Typically, MP refers to Marginal Product, which could be the Marginal Product of Labor or the Marginal Product of Capital, depending on whether the subscript refers to the second variable in a production function or the second unit of input.

User Christian MICHON
by
8.3k points