Question
1. The short-run production function of a competitive firm is given by () = 62/3, where L is the amount of labour it uses. The
1. The short-run production function of a competitive firm is given by () = 62/3, where L is the amount of labour it uses. The cost per unit of labour is = 6 and the price per unit of output is = 3.
b) How many units of labour will the firm hire? How much output will it produce? If the firm has no other costs, how much will its total profits be?
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Managerial Economics
Authors: Paul Keat, Philip K Young, Steve Erfle
7th edition
0133020266, 978-0133020267
