Suppose that a firm's production function is given by Q=20L-2L^2 of the price of produc of labor Birr 20 what will be the marginal physical product of the second worker employed?
A. 16
B. 12
C. 18
D. 40
To find the marginal physical product (MPP) of the second worker employed, we need to take the derivative of the production function with respect to labor (L), and then evaluate it when L = 2.
Q = 20L - 2L^2
Taking the derivative with respect to L:
dQ/dL = 20 - 4L
Now let's substitute L = 2 into this derivative equation:
dQ/dL = 20 - 4(2)
= 20 - 8
= 12
Therefore, the marginal physical product (MPP) of the second worker employed is 12. Hence, the answer is B. 12.
To calculate the marginal physical product (MPP) of the second worker employed, we need to find the change in output when the second worker is added.
Given:
Production function: Q = 20L - 2L^2
Price of labor: Birr 20
To calculate the MPP, we need to differentiate the production function with respect to labor (L) and evaluate it at the quantity of labor (L) equal to two (for the second worker).
Differentiating the production function with respect to L:
dQ/dL = 20 - 4L
Now, substituting the value of L=2 into the above equation:
dQ/dL = 20 - 4(2)
= 20 - 8
= 12
Therefore, the marginal physical product (MPP) of the second worker employed is 12.
The correct answer is B. 12.