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The production function of a company is: q = 16 L + 15 K - K 2 / 5 - 2 L 2 / 10
The production function of a company is: q = 16 L + 15 K - K 2 / 5 - 2 L 2 / 10 - 3 where q is the quantity of mobile phones produced per day, L is the number of employees, and K is the units of capital worth USD 10,000. The cost of unit capital per day is USD 20. and the average monthly salary of an employee is USD 1,200. The management wants you to find the optimal values of q, K and L in order to maximize profit, if the unit selling price of each mobile phone is USD 100.
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