Determine the marginal revenue product function

Reference no: EM13213481

Consider the following short-run production function ( where L =variable input, Q=output): Q=10L - 0.5 L2 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.

• Determine the marginal revenue product function

• Determine the marginal factor cost function

• Determine the optimal value of L, given that the objective is to maximize profits

Reference no: EM13213481

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