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Question: A firm has the following short-run production function:
Q = 50L + 6L2- 0.5L3
where Q = quantity of output per week, L = number of workers employed.
A) When does the law of diminishing returns take effect?
B) Calculate the range of values for labor over which stages I, II and III occur.
C) Assume that each worker is paid $10 per hour for a 40-hour week, and that the output price is $10 How many workers should the firm hire?
Strategic planning and the tradtional steps to build an organizational strategic plan
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