ZuoTi.Pro
Question

A production function is given as Q = 21L - 0.06L2. If each unit of output...

  1. A production function is given as Q = 21L - 0.06L2.
  1. If each unit of output Q contributes $10 in revenue (sells for $10) and each labor unit costs $42 per hour, how many units of labor (L) should be hired to maximize profit?
  2. Given your answer to part c, what output (Q) will the firm produce?   
  3. Assuming no other cost than labor costs, what is the profit at this level of labor and output
  4. Suppose that the marginal revenue from the product is unchanged at $10, but that the cost of hiring labor increases to $54 per hour. How many labor units (L) will the firm employ?
business   economics   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

0 0
Add a comment
Know the answer?
Add Answer to:
A production function is given as Q = 21L - 0.06L2. If each unit of output...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • 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. 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):    Determine how much output with the 200th worker contribute: Determine the amount of labor (L) where output (Q) is maximized (known as Lmax):...

  • Suppose a short-run production function is described as Q = 1L - (1/800)L2 where L is...

    Suppose a short-run production function is described as Q = 1L - (1/800)L2 where L is the number of labors used each hour. The firm's cost of hiring (additional) labor is $20 per hour, which includes all labor costs. The finished product is sold at a constant price of $40 per unit of Q. a. State the firm's MPL: b. How many labor units (L) should the firm employ per hour: c. Given your answer in b, what is the...

  • The production function of the Auto parts firm is given by Q-5L-L, where Q is the...

    The production function of the Auto parts firm is given by Q-5L-L, where Q is the units of output and L is the number of labor hours. Each output sells for 100 dollars per unit. The human resources manager estimates that the marginal cost of hiring an extra worker is 50 dollars. How many labor hours should this firm hire? Hint: MPL=5-2 L 1) 2) A frim's production function is given by Q(L)-6L, where Q measures output and L is...

  • 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):   ...

  • Imagine that your firm has a production function given by Q = 2 KL, where K...

    Imagine that your firm has a production function given by Q = 2 KL, where K is capital and L is labor. If capital rents for $100 per unit per day, labor can be hired for $200 per unit per day, and the firm is minimizing costs, a. What is the total cost of producing q units of output? b. What is the average cost of producing q units of output? c. What is the marginal of producing q units...

  • The production function for homes is given by: Q = 5KL Where Q = output of...

    The production function for homes is given by: Q = 5KL Where Q = output of homes per week              K = capital              L = work teams a. Assuming capital is fixed at K=5, how many labor teams does the firm need to hire if it wants to produce 100 homes ? b. If each labor team costs $500 and capital costs $100 per unit, how much will it cost them to produce 100 homes? c. If there are...

  • Suppose that a firm is producing in the short run with output given by: Q =...

    Suppose that a firm is producing in the short run with output given by: Q = 75L-L2 The firm hires laborat a wage of $32 per hour and sells the good in a competitive market at P = $24 per unit. Now suppose that a firm is looking to maximize Total Revenue (not Total Profit) How many workers (L) should the firm hire? Enter as a value. ROUND TO THE NEAREST WHOLE NUMBER.

  • 1. A firm operates in the long run. Its long-run production function is given as: Q...

    1. A firm operates in the long run. Its long-run production function is given as: Q = LK, where Qis units of output, Lis units of labor, and K is units of capital. (a) Obtain six integer combinations of Land K when Q = 12. (b) Obtain six integer combinations of Land K when Q = 18. (c) Use the twelve integer combinations of Land K obtained in parts (a) and (b) to construct two isoquants on a two-dimensional plane....

  • e total cost 19. For a certain firm, the 10th unit of output marginal cost of Sto. It follows that the production...

    e total cost 19. For a certain firm, the 10th unit of output marginal cost of Sto. It follows that the production of the 10th it fo r of outputut the firm produse marinat revenue of land them the firm's profi not the 100th unit of t h e firm's average total costs C. Firm's profit-maximize ve futut is less than 100 units. d. production of the 101st unit of output the lost unit of output must increase the firm's...

  • 2. Suppose that a firm’s production function is Q = 10 L½ K½ and the unit...

    2. Suppose that a firm’s production function is Q = 10 L½ K½ and the unit cost of labor is $20, capital is $80, and the product price is $12 per unit. The firm is currently producing 100 units of output and has determined that its cost minimizing quantities of labor and capital usage for this level of output is 20 and 5 respectively. The product price is $12 per unit. a. Determine the current total cost for 100 units,...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT