The short-run production function of a competitive firm is given by f(L)=6L2/3f(L)=6L2/3 where LL is the amount of labor it uses. The cost per unit of labor is w=6w=6 and the price per unit of output is p=3p=3. What is the total profit if there is no other cost? Select one: a.8 b.6 c.24 d.12
The short-run production function of a competitive firm is given by f(L)=6L2/3f(L)=6L2/3 where LL is the amount of labor it uses. The cost per unit of labor is w=6w=6 and the price per unit of output is p=3p=3. What is the total profit if there is no other cost? Select one: a.8 b.6 c.24 d.12
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter4: Extent (how Much) Decisions
Section: Chapter Questions
Problem 4MC
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The short-run production function of a competitive firm is given by f(L)=6L2/3f(L)=6L2/3 where LL is the amount of labor it uses. The cost per unit of labor is w=6w=6 and the price per unit of output is p=3p=3.
What is the total profit if there is no other cost?
Select one:
a.8
b.6
c.24
d.12
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