I understand this question is very long, but please only answer if you can complete all of it. Thank you so much in advance!!
A. MPL = dQ/dL = 30 - 2(0.05L) = 30 - 0.1L
B. At L = 200, MPL = 30 - 0.1(200) = 30-20 = 10
C. Output is maximized when MPL=0
So, 30-0.1L = 0
So, 0.1L = 30
So, L = 30/.1 = 300
Lmax = 300
D. Profit is maximised when MRPL = MC
MRPL = MR*MPL= 5*(30-0.1L) = 150 - 0.5L
So, 150-0.5L = 40
So, 0.5L = 150-40 = 110
So, L = 110/.5
Thus, L = 220
(Note: As HOMEWORKLIB's policy, 4 subparts are to be answered at a time.)
I understand this question is very long, but please only answer if you can complete all...
I understand this question is very long, but please only answer if you can complete all of it. When I posted it the first time I received a-d, which I am including below. I am not sure if they are correct. Thank you so much in advance!! Suppose a short-run production function is described as Q = 30L - 0.05L2 where L is the number of labors used each hour. Derive the equation for Marginal Product of labor (MPL): ...
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