A firm estimates its production function as Q = -2.4 + 20*L -.5*L2 + 30*K -1.00*K2 + 15*F -.3*F2. Total cost is TC = $2*L + $2.5*K + $1.75*F. The firm can sell all the output it wishes at $200 per unit. Use Excel to find the cost minimizing and profit-maximizing amounts of L, K and F. How much F (Fuel) should the firm use? A. F=7. B. F=12. C. F=16. D. F=19. E. F=25.
A firm estimates its production function as Q = -2.4 + 20*L -.5*L2 + 30*K -1.00*K2 + 15*F -.3*F2. Total cost is TC = $2*L + $2.5*K + $1.75*F. The firm can sell all the output it wishes at $200 per unit. Use Excel to find the cost minimizing and profit-maximizing amounts of L, K and F. How much F (Fuel) should the firm use? A. F=7. B. F=12. C. F=16. D. F=19. E. F=25.
A firm estimates its production function as Q = -2.4 + 20*L -.5*L2 + 30*K -1.00*K2 + 15*F -.3*F2. Total cost is TC = $2*L + $2.5*K + $1.75*F. The firm can sell all the output it wishes at $200 per unit. Use Excel to find the cost minimizing and profit-maximizing amounts of L, K and F. How much F (Fuel) should the firm use? A. F=7. B. F=12. C. F=16. D. F=19. E. F=25.
A firm estimates its production function as Q = -2.4 + 20*L -.5*L2 + 30*K -1.00*K2 + 15*F -.3*F2. Total cost is TC = $2*L + $2.5*K + $1.75*F. The firm can sell all the output it wishes at $200 per unit. Use Excel to find the cost minimizing and profit-maximizing amounts of L, K and F. How much F (Fuel) should the firm use?
A.
F=7.
B.
F=12.
C.
F=16.
D.
F=19.
E.
F=25.
Expression, rule, or law that gives the relationship between an independent variable and dependent variable. Some important types of functions are injective function, surjective function, polynomial function, and inverse function.
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