Firm Catabet Ltd. has the production function: Q2 = (L K)/3.9
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:
Firm Catabet Ltd. has the production function: Q2 = (L K)/3.9 where Q is output quantity. Catabet wants to produce as mu
-
- Site Admin
- Posts: 899603
- Joined: Mon Aug 02, 2021 8:13 am