Afirm has following short-run production function where l

Reference no: EM13388620

A firm has the following short-run production function (where L = Labor and Q = Output):

Q = 10L - 0.5L2

Suppose that the output can be sold for $10 per unit. Further assume that the firm can obtain as much of the variable input (L) as it needs at $20 per unit.

a) Determine the marginal revenue function.

b) Determine the value of L that maximizes profits.

Reference no: EM13388620

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