A firm's production function is Q = 5 + 25L - .5L2 + 30K – K2, and its demand function is PQ = MRQ = d = $30. The prices of L and K are PL = $6 and PK = $12. Use Excel Solver to find the profit-maximizing and cost minimizing amounts of L and K to employ. The profit- maximizing and cost minimizing amount of L is:

A firm's production function is Q = 5 + 25L - .5L2 + 30K – K2, and its demand function is PQ = MRQ = d = $30. The prices of L and K are PL = $6 and PK = $12. Use Excel Solver to find the profit-maximizing and cost minimizing amounts of L and K to employ. The profit- maximizing and cost minimizing amount of L is:

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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