Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 3 (b) Suppose the short-run production function for a firm producing a lipsticks is given by: Q = 64 - 0.412 + 2K, where

image text in transcribed
Question 3 (b) Suppose the short-run production function for a firm producing a lipsticks is given by: Q = 64 - 0.412 + 2K, where Q is the number of books produced, L is the amount of labour used and K is the number of capital used. If the unit price of a lipstick produced is $15, 10 units of capital are used and the cost of a unit of labour and capital are is $18 and $ 12 respectively, how many units of labour should the firm employ in order to maximise profit? 4 marks

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Statistics

Authors: Robert S. Witte, John S. Witte

11th Edition

1119254515, 978-1119254515

Students also viewed these Economics questions