Question: Consider the following short - run production function ( where L = variable input, Q = output ) : Q = 6 L 0 .

Consider the following short-run production function (where L = variable input, Q = output):
Q=6L0.4L2Q=6L0.4L2
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.
What is the marginal revenue product function (MRPLMRPL)?
$60$8L$60$8L
$20$20
$6$0.40L$6$0.40L
$10$10
What is the marginal factor cost function (MFCLMFCL)?
$20$20
$10$10
$60$8L$60$8L
$6$0.40L$6$0.40L
What is the optimal value of L, given that the objective is to maximize profits?
units

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