A firm's production is as follows: Q = 12K/2L/3, where L is number of workers and K is number of machines. The firm spent $100,000 for the 81 machines it owns. The selling price of the output is $300, and each worker can be hired for $48. What is the firm's maximum %3D total profit?

A firm's production is as follows: Q = 12K/2L/3, where L is number of workers and K is number of machines. The firm spent $100,000 for the 81 machines it owns. The selling price of the output is $300, and each worker can be hired for $48. What is the firm's maximum %3D total profit?

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter7: Production And Cost In The Firm

Section: Chapter Questions

Problem 3.8P

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Question

A firm's production is as follows: Q = 12K2L/3, where L is number
of workers and K is number of machines. The firm spent $100,000
for the 81 machines it owns. The selling price of the output is $300,
and each worker can be hired for $48. What is the firm's maximum
total profit?
O $372,000
O $422,000
O $224,000
O $148,000

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