Question
The production function for milk is: Q = 60L - L^2 Milk sells for $2 per unit. The cost of each unit of labor (L)
The production function for milk is:
Q = 60L - L^2
Milk sells for $2 per unit. The cost of each unit of labor (L) is $20 per hour.
a. What is the optimal amount of labor (L) to hire?
b. If the company raises their price to $4, what would the optimal amount of (L) to hire?
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College Mathematics for Business Economics Life Sciences and Social Sciences
Authors: Raymond A. Barnett, Michael R. Ziegler, Karl E. Byleen
12th edition
321614003, 978-0321614001
