Let a firm's production function Q (L)=12L^2-1/20L^3 (i.e. output as TL or the amount of production depends on the workforce, L, as Q is the number of people with a single production input). This function let be the foreground 0 ≤ L ≤ 200 for. Accordingly, A) What is the number of labour force (L*) that will make output (Q) the highest? B) what is the number of workers (L**) who will make the maximum amount of output per employee(i.e. Q (L)/L)? c) in both cases the output of the L* and L** values you find and the output per employee at the most how can you be sure it's high? Show me.
Let a firm's production function Q (L)=12L^2-1/20L^3 (i.e. output as TL or the amount of production depends on the workforce, L, as Q is the number of people with a single production input). This function let be the foreground 0 ≤ L ≤ 200 for. Accordingly, A) What is the number of labour force (L*) that will make output (Q) the highest? B) what is the number of workers (L**) who will make the maximum amount of output per employee(i.e. Q (L)/L)? c) in both cases the output of the L* and L** values you find and the output per employee at the most how can you be sure it's high? Show me.
Chapter11: Profit Maximization
Section: Chapter Questions
Problem 11.9P
Related questions
Question
Let a firm's production function Q (L)=12L^2-1/20L^3 (i.e. output as TL or
the amount of production depends on the workforce, L, as Q is the number of people with a single production input). This function
let be the foreground 0 ≤ L ≤ 200 for. Accordingly,
A) What is the number of labour force (L*) that will make output (Q) the highest?
B) what is the number of workers (L**) who will make the maximum amount of output per employee(i.e. Q (L)/L)?
c) in both cases the output of the L* and L** values you find and the output per employee at the most
how can you be sure it's high? Show me.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 3 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Managerial Economics: Applications, Strategies an…
Economics
ISBN:
9781305506381
Author:
James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:
Cengage Learning
Microeconomics: Principles & Policy
Economics
ISBN:
9781337794992
Author:
William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:
Cengage Learning
Managerial Economics: Applications, Strategies an…
Economics
ISBN:
9781305506381
Author:
James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:
Cengage Learning
Microeconomics: Principles & Policy
Economics
ISBN:
9781337794992
Author:
William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:
Cengage Learning