Question: Consider the following short - run production function ( where L = variable input labor hours; Q = output units produced ) : Q =

Consider the following short-run production function (where L = variable input labor hours; Q = output units produced):
Q=10L 0.5L2
Suppose that each unit of output can be sold for $10 per unit. Also assume that the firm can obtain as much of the variable input (L) labor as it needs at $20 per hour.
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.

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