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Question 4 (part of QUESTION B1) Firm Catabet Ltd. has the production function: Q2 = (L K)/2.5 where Q is output quantit
Posted: Thu May 19, 2022 7:57 am
by answerhappygod
- Question 4 Part Of Question B1 Firm Catabet Ltd Has The Production Function Q2 L K 2 5 Where Q Is Output Quantit 1 (30.46 KiB) Viewed 52 times
Question 4 (part of
QUESTION B1) Firm Catabet Ltd. has the production function: Q2 = (L K)/2.5 where Q is output quantity. Catabet wants to produce as much as it can, subject to the constraint that it must hire a fixed amount of capital: 400. Output quantity Q and labour L can vary. The price of each unit sold is £1. The wage, and the cost of hiring a photocopier, are both £10. Write an equation for profit. Find the first derivative d(profit) dL Set this first derivative to zero, to find the optimal L. Type your calculation of L in this box: Answer: