Answer to Question #349817 in Microeconomics for Axis

Question

A firm's production function is described by the following equation 𝑸=𝟏𝟎,𝟎𝟎𝟎𝑳−𝟑𝑳 𝟐 where L stands for the labor units. (20 points).

a) Draw a graph for this equation. Use the quantity produced on the y-axis and the labor units on the x-axis.

b) What is the maximum production level?

c) How many units of labor are needed at that point? 

Answer 1

$Q=10000L-3L^2,$

$Q'=10000-6L,$

$Q'=0,$

$L=1667,$

$Q=8333333.$