THE PROBLEM BELOW IS DUE FOR HOMEWORK ON THURSDAY, FEBRUARY 12
Total Points = 40
NAME___________________________
1. George and Martha’s Farm sits on ten acres of land. No more acres are
available to them and they are currently unable to either increase or decrease
the size of their farm by selling, buying, or leasing land. On the other hand,
George and Martha are free to decide how many workers to hire. Their
production function is shown in the table below.
Quantity of labor
(# of workers hired)
Quantity of wheat
(bushels)
Marginal physical product
of labor
0 0 ------
1 19
2 36
3 51
4 64
5 75
a. Is the production function above a short-run or a long-run
production function? Explain briefly how you know. (2 points)
b. Graph the production function in the graph on page 2.
(3
points)
1
