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A firm's production function is given by Q = 2L2 + 3K/2 where Q, L andK denote the number of units of output, labour and capital, respectively. Labour costs are $2 per unit, capital costs are $1 per unit and output sells at $8 per unit. If the firm is prepared to spend $99 on input costs, find the maximum profit and the values of K and L at which it is achieved.

A firm's production function is given by Q = 2L2 + 3K/2 where Q, L andK denote the number of units of output, labour and capital, respectively. Labour costs are $2 per unit, capital costs are $1 per unit and output sells at $8 per unit. If the firm is prepared to spend $99 on input costs, find the maximum profit and the values of K and L at which it is achieved.

Algebra for College Students
Algebra for College Students
10th Edition
ISBN:9781285195780
Author:Jerome E. Kaufmann, Karen L. Schwitters
Publisher:Jerome E. Kaufmann, Karen L. Schwitters
Chapter9: Polynomial And Rational Functions
Section9.4: Graphing Polynomial Functions
Problem 44PS: A company determines that its weekly profit from manufacturing and selling x units of a certain item...
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A firm’s production function is given by
Q = 2L^(1/2) + 3K^(1/2)
where Q, L, and K denote the number of units of output, labour and capital, respectively. Labour costs are $2 per unit, capital costs are $1 per unit and output sells at $8 per unit. If the firm is prepared to spend $99 on input costs, find the maximum profit and the values of K and L at which it is achieved.

A firm's production function is given by Q = 2L2 + 3K1/2 where Q, L and K denote the number of units of output, labour and capital, respectively. Labour costs are $2 per unit, capital costs are $1 per unit and output sells at $8 per unit. If the firm is prepared to spend $99 on input costs, find the maximum profit and the values of K and L at which it is achieved.
Transcribed Image Text:A firm's production function is given by Q = 2L2 + 3K1/2 where Q, L and K denote the number of units of output, labour and capital, respectively. Labour costs are $2 per unit, capital costs are $1 per unit and output sells at $8 per unit. If the firm is prepared to spend $99 on input costs, find the maximum profit and the values of K and L at which it is achieved.
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