A firm's short-run production function is q = 3L0.2, while its cost function is C = 2L. Furthermore, the firm can sell its output in a perfectly competitive market at p = 40. 6.1 Find the value of the firm's profit when L = 50. L that satisfies the first-order condition for profit 6.2 Calculate the level of maximization. 6.3 Calculate the value of the second order derivative (SOD) that ensures profit is being maximised at the value of L found in 6.2 .
A firm's short-run production function is q = 3L0.2, while its cost function is C = 2L. Furthermore, the firm can sell its output in a perfectly competitive market at p = 40. 6.1 Find the value of the firm's profit when L = 50. L that satisfies the first-order condition for profit 6.2 Calculate the level of maximization. 6.3 Calculate the value of the second order derivative (SOD) that ensures profit is being maximised at the value of L found in 6.2 .
Chapter2: Mathematics For Microeconomics
Section: Chapter Questions
Problem 2.2P
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![A firm's short-run production function
is q = 3L0.2, while its cost function is C = 2L.
Furthermore, the firm can sell its
output in a perfectly competitive market at p
= 40.
6.1 Find the value of the firm's profit
when L = 50.
L that
satisfies the first-order condition for profit
6.2 Calculate the level of
maximization.
6.3 Calculate the value of the second
order derivative (SOD) that ensures profit is
being
maximised at the value of L found
in 6.2 .](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F03068980-ad70-4627-b4b1-22ba3f10354c%2Fffb02d72-abbd-4353-b6fa-39d006e5bf8e%2F60yqf69.png&w=3840&q=75)
Transcribed Image Text:A firm's short-run production function
is q = 3L0.2, while its cost function is C = 2L.
Furthermore, the firm can sell its
output in a perfectly competitive market at p
= 40.
6.1 Find the value of the firm's profit
when L = 50.
L that
satisfies the first-order condition for profit
6.2 Calculate the level of
maximization.
6.3 Calculate the value of the second
order derivative (SOD) that ensures profit is
being
maximised at the value of L found
in 6.2 .
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