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Consider the following short run production function

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6. Consider the following short run production function (where L=variable input, Q=output): Q=10L-0.5L^2 Suppose that output can be sold for $10 per unit. Also assume that the firm can obtain as much of the variable input (L) as it needs at $20 per unit.;c. Determine the optimal value of L, given that the objective is to maximize profits.

 

Paper#28570 | Written in 18-Jul-2015

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