Determine the marginal revenue product function

Assignment Help Business Economics

Reference no: EM13150809

Consider the following short-run production function (where L =variable input, Q =output: Q = 10L - 0.5L2 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. a. Determine the marginal revenue product function b, Determine the marginal factor cost function c. Determine the optimal value of L, given that the objective is to maximize profits.

Reference no: EM13150809

Questions Cloud

Find the test value for hypothesis : Students revealed an average cost of books of $370 per student. The Dean of Students believes that the costs are greater this semester. What is the test value for this hypothesis?

Basics of par common stock outstanding : Vincent Corporation has 73,000 shares of $100 par common stock outstanding. On June 30, Vincent Corporation declared a 3% stock dividend to be issued July 30 to stockholders of record July 15. The market price of the stock was $131 a share on June..

How many grams of nitrogen can be produced : Ammonia and oxygen react to form nitrogen and water. How many grams of N2 can be produced when 6.30g O2 reacts?

Completing a bank reconciliation statement : When completing a bank reconciliation statement, what do you do with outstanding checks?

Determine the marginal revenue product function : Consider the following short-run production function (where L =variable input, Q =output: Q = 10L - 0.5L2 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 $2..

Probabilities of various outcomes to take information : If the proposed textbook receives a favorable review, how should the editor revise the probabilities of the various outcomes to take this information into account?

Foreign currency transactions-foreign currency translation : What are the differences between fair value can flow and foreign currency hedges? What is the difference between accounting for foreign currency transactions and foreign currency translation?

Investment income and the ending balance : Calculate the investment income and the ending balance in the investment account on the balance sheet for ABC Company on December using the cost method.

How much carbon dioxide gas will dissolve : At a pressure of 1.00 atm and a temperature of 20 degree Celsius, 1.72 g CO2 will dissolve in 1 L of water. How much CO2 will dissolve if the pressure is raised to 1.35 atm and the temperature stays the same?

User Account

All Pages