Question: Question 3 (b) Suppose the short-run production function for a firm producing a lipsticks is given by: Q = 6L - 0.412 + 2K, where

Question 3 (b) Suppose the short-run production function for a firm

Question 3 (b) Suppose the short-run production function for a firm producing a lipsticks is given by: Q = 6L - 0.412 + 2K, where Q is the number of books produced, L is the amount of labour used and K is the number of capital used. If the unit price of a lipstick produced is $ 15, 10 units of capital are used and the cost of a unit of labour and capital are is $ 18 and $ 12 respectively, how many units of labour should the firm employ in order to maximise profit? 4 marks

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