Question: Hi, I need some help with my assignment. A competitive firm has a production function given by, Q=f(L)=6L 2 - 0.2L 3 whereLis the labor

Hi, I need some help with my assignment.

A competitive firm has a production function given by,

Q=f(L)=6L2- 0.2L3

whereLis the labor used for the production.

(a)Find the level of laborL*that maximizes output.

What is the maximum output that can be produced?

Graph the production function indicating all the critical points (intercepts and extrema points).

(b)Find the level of laborL* that maximizes the average product of labor.

Calculate the marginal product of labor and the average product of labor at that level.

What do you observe?

Graph the average production function and the marginal production function.

(c)Suppose now that the product sells forp= $1and the wage per unit of labor isw= $45.

White the profit function(L)and find the profit maximizing level of laborL*.

What is the maximum profit?

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