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1a) Consider the production function Q = 0 + 6L + 5L 2 - .2L 3 . The range of labor covering Stage II of
1a) Consider the production function Q = 0 + 6L + 5L2- .2L3. The range of labor covering Stage II of production is ____ to ____. You can use a spreadsheet or otherwise to answer this question.
A. | 6 to 12. | |
B. | 12 to 20. | |
C. | 26 to 34. | |
D. | 36 to 45. | |
E. | 48 to 56. |
b) A firm's LRTC = 600Q - .5Q2 + .001Q3. At what level of output does the firm experience minimum efficient scale? This problem can be solved either by a spreadsheet, Excel Solver
or otherwise
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