Question: Consider the following short - run production function ( where L = variable input, Q = output ) : Q = 6 L 0 .
Consider the following shortrun production function where L variable input, Q output:
QLLQLL
Suppose that output can be sold for $ per unit. Also assume that the firm can obtain as much of the variable input L as it needs at $ per unit.
What is the marginal revenue product function MRPLMRPL
$$L$$L
$$
$$L$$L
$$
What is the marginal factor cost function MFCLMFCL
$$
$$
$$L$$L
$$L$$L
What is the optimal value of L given that the objective is to maximize profits?
units
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