Quiz I for Section 7

Given the production function, , find

1) APL function
2) MPL function
3) The level of labor input that maximizes output.
4) Maximum output.
Quiz II for Section 7
Given , find
1) TFC and AFC functions
2) TVC and AVC functions
3) AC function
4) MC function
5) Find minimum AVC,
6) Find minimum MC
7) Find the level of output that minimizes MC
 Quiz for Section 8 (2%)
Suppose short run production function of a firm producing wheat floor is
given by Q (L, 𝐾) = KL + 0.5𝐾𝐿2 − 0.01𝐾𝐿3 and 10 units of machinery,

1) Write the production function Q(L) of the firm.

2) What is the level of production when the production process requires 81
workers?
3) Find the level of labor input that maximizes quantity of shoes produced per
unit of labor. Find the level of output at this level of input.
4) What is the maximum level of production by this firm?
5) Sketch TP, APL and MPL curves on the same xy plane
6) Write ranges of production that falls in different stages of production.
NB: write the steps neatly and precisely.
Quiz II for Section 8 (2%)
1) At what level of production does TC = TFC
2) Proof that AC = AFC + AVC
3) Proof that the slope of AC and AVC are equal.
4) Sketch AC, AVC, MC, and AFC on the same xy plane
5) Proof MC = w/MPL
 Quiz for Section 9 (2%)
Suppose short run production function of a firm producing wheat flour with a
fixed capital of 10 units and variable inputs labor (L) is given by
Q (L, 𝐾) = KL + 0.5𝐾𝐿2 − 0.01𝐾𝐿3 .
1) Write production function Q(L) of the firm.
2) Find the level of labor input that maximizes quantity of wheat flour per unit of labor input.
3) Find quantity of wheat flour produced in Q#2 above.
4) Find the level of labor input that maximizes production of wheat floor by the firm.
5) Find the level of labor input that maximizes MPL
6) Sketch and compare TP, APL and MPL curves based on results obtained from Q#1-5 above.
7) Write ranges of labor inputs of different stages of production using results obtained in Q#1-
6 above.
8) Briefly describe (using one or two sentences) how outputs (TP) grows as the level of
variable inputs increases.
NB: Clearly and precisely write the steps .
 Quiz II for Section 9 (2%)
1) Explain why TC and TFC are equal at zero level of output.
2) Explain with a single sentence why total fixed cost of a typical production
function is different from zero when output is zero.
3) Proof that AC = AFC + AVC.
4) Proof that the slope of TC and slope of AVC are equal.
5) Proof also that the slope of AC and slope AVC are equal.
6) Sketch TC, TFC, and TVC of typical production function.
7) Sketch AC, AVC, MC, and AFC curves for a typical cost function.
8) Sketch graph or graphs that relate short run production function and short
run cost function.