Answered step by step
Verified Expert Solution
Question
1 Approved Answer
A firm's production function is Q = 60K^1/3 L^1/2. The firm purchased 27 machines for $50,000 and won't be able to obtain any more machines.
A firm's production function is Q = 60K^1/3 L^1/2. The firm purchased 27 machines for $50,000 and won't be able to obtain any more machines. The selling price of the output is $8. The wage rate is $24 per hour.
a. Find MPL
b. Find VMPL
c. How many hours of labor should the firm hire?
d. Find the firm's output
e. Find the profit
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started