Suppose the firm short run production function is a quadratic one in the form: Q = 2L+ 0.25 L2, the firm hires any number of workers at a wage of $40/day, and sell any quantity of its output at a price of $4. Find how many workers should this firm hire to maximize profits.
Suppose the firm short run production function is a quadratic one in the form: Q = 2L+ 0.25 L2, the firm hires any number of workers at a wage of $40/day, and sell any quantity of its output at a price of $4. Find how many workers should this firm hire to maximize profits.
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter7: Production Economics
Section: Chapter Questions
Problem 6E
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Suppose the firm short run production function is a quadratic one in the form:
Q = 2L+ 0.25 L2, the firm hires any number of workers at a wage of $40/day, and sell any quantity of its output at a price of $4. Find how many workers should this firm hire to maximize profits.
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