Suppose the short-run production function for a restaurant producing a pack of food is given by: Q = 3L – 0.312 Where Q is the number of packs of food produced and Lis the amount of labour used. If the cost of a unit of labour is C6 and the unit price of a pack of food produced is ¢10, a) what is the amount of labour the restaurant should employ in order to maximize profit. b) How much profit is made?

Suppose the short-run production function for a restaurant producing a pack of food is given by: Q = 3L – 0.312 Where Q is the number of packs of food produced and Lis the amount of labour used. If the cost of a unit of labour is C6 and the unit price of a pack of food produced is ¢10, a) what is the amount of labour the restaurant should employ in order to maximize profit. b) How much profit is made?

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter11: Profit Maximization

Section: Chapter Questions

Problem 11.9P

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