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Business, 12.08.2020 05:01 joselynflores574

The production function for the personal computers of DISK, Inc., is given by q = 10K 0.5L 0.5, where q is the number of computers produced per day, K is hours of machine time, and L is hours of labor input. DISK’s competitor, FLOPPY, Inc., is using the production function q = 10K 0.6L 0.4. Assume that capital is limited to 9 machine hours, but labor is unlimited in supply. In which company is the marginal product of labor greater? Explain.

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