Suppose that a firm is producing in the short run with output given by: Q=250L-15L², The firm hires labor at a wage of $50 per hour and sells the good in a competitive market at P = $75 per unit. Find the firm's optimal use of labor and associated level of output.

Principles of Microeconomics
7th Edition
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter18: The Markets For The Factor Of Production
Section: Chapter Questions
Problem 3CQQ
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2.
Suppose that a firm is producing in the short run with output given by:
Q = 250L - 15L²,
The firm hires labor at a wage of $50 per hour and sells the good in a competitive market at P = $75
per unit. Find the firm's optimal use of labor and associated level of output.
Transcribed Image Text:2. Suppose that a firm is producing in the short run with output given by: Q = 250L - 15L², The firm hires labor at a wage of $50 per hour and sells the good in a competitive market at P = $75 per unit. Find the firm's optimal use of labor and associated level of output.
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