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Suppose the short-run production function for a restaurant producing a pack of food is given by: Q = 3L – 0.312 Where Q is the number of packs of food produced and L is the amount of labour used. If the cost of a unit of labour is ¢6 and the unit price of a pack of food produced is ¢10, a) what is the amount of labour the restaurant should employ in order to maximize profit. b) How much profit is made?

Suppose the short-run production function for a restaurant producing a pack of food is given by: Q = 3L – 0.312 Where Q is the number of packs of food produced and L is the amount of labour used. If the cost of a unit of labour is ¢6 and the unit price of a pack of food produced is ¢10, a) what is the amount of labour the restaurant should employ in order to maximize profit. b) How much profit is made?

Principles of Economics 2e
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
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e Managenal Econom Lecture 7 - Production a X BBAF 307 Course Outline-20 BBAF 307 ; MANAGERIAL EC O BBAF 307 MANAGERIAL ECC + file:///D:/Bra%20Quercu/level9620300/MANAGERIAL%20ECONOMICS/Lecture%207%20-%20Production%20and%20Cost%20in%20the%20Short%20Run.pdf SERVICE EXCELLENCE ACCOUNTNG AND FINANCE Example 3 Suppose the short-run production function for a restaurant producing a pack of food is given by: Q = 3L – 0.3L2 || Where Q is the number of packs of food produced and L is the amount of labour used. If the cost of a unit of labour is ¢6 and the unit price of a pack of food produced is ¢10, a) what is the amount of labour the restaurant should employ in order to maximize profit. b) How much profit is made? 2:59 A へ 図) 3/12/2 I'm Cortana. Ask me anything. hp
Transcribed Image Text:e Managenal Econom Lecture 7 - Production a X BBAF 307 Course Outline-20 BBAF 307 ; MANAGERIAL EC O BBAF 307 MANAGERIAL ECC + file:///D:/Bra%20Quercu/level9620300/MANAGERIAL%20ECONOMICS/Lecture%207%20-%20Production%20and%20Cost%20in%20the%20Short%20Run.pdf SERVICE EXCELLENCE ACCOUNTNG AND FINANCE Example 3 Suppose the short-run production function for a restaurant producing a pack of food is given by: Q = 3L – 0.3L2 || Where Q is the number of packs of food produced and L is the amount of labour used. If the cost of a unit of labour is ¢6 and the unit price of a pack of food produced is ¢10, a) what is the amount of labour the restaurant should employ in order to maximize profit. b) How much profit is made? 2:59 A へ 図) 3/12/2 I'm Cortana. Ask me anything. hp
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