#### Question Details

A firm has the following short-run production function (where L = Labor and Q = Output):

**Description**

Answer Download

**The Question**

A firm has the following short-run production function (where L = Labor and Q = Output):

Q = 10L ? 0.5L^{2}

Suppose that the output can be sold for $10 per unit. Further assume that the firm can obtain as much of the variable input (L) as it needs at $20 per unit.

a) Determine the marginal revenue function (5 points)

b) Determine the value of L that maximizes profits (5 points)

A company uses two variable inputs, labor (L) and materials (M), to produce its output. At the company?s current level of output:

C_{L} = $10 / unit MP_{L} = 25

C_{M} = $2 / unit MP_{M} = 4

a) Determine whether the firm is operating efficiently, given that its objective is to minimize the cost of producing the given the level of output (5 points)

b) Determine what changes (if any) in the relative proportions of labor and materials are needed to operate efficiently (5 points)

A company has a cost structure described in the table below. Using your knowledge of the types of costs involved in a production process, fill in the blanks in the table.

Quantity produced | Total Cost | Total Fixed Cost | Total Variable Cost | Average Total Cost | Average Fixed Cost | Average Variable Cost | Marginal Cost |

0 | 100 | 0 | - | - | - | - | |

1 | 160 | ||||||

2 | 80 | ||||||

3 | 65 | ||||||

4 | 10 | ||||||

5 | 120 | ||||||

6 | 40 | ||||||

7 | 180 | ||||||

8 | 30 | ||||||

9 | 421 | ||||||

10 | 100 |

##### Pay using PayPal (No PayPal account Required) or your credit card . All your purchases are securely protected by .

#### About this Question

STATUSAnswered

QUALITYApproved

DATE ANSWEREDSep 21, 2019

EXPERTTutor

ANSWER RATING

#### BEST TUTORS

We have top-notch tutors who can do your essay/homework for you at a reasonable cost and then you can simply use that essay as a template to build your own arguments.

You can also use these solutions:

- As a reference for in-depth understanding of the subject.
- As a source of ideas / reasoning for your own research (if properly referenced)
- For editing and paraphrasing (check your institution's definition of plagiarism and recommended paraphrase).

#### STUCK WITH YOUR PAPER?

### Order New Solution. Quick Turnaround

Click on the button below in order to Order for a New, Original and High-Quality Essay Solutions.
New orders are original solutions *and precise to your writing instruction requirements. Place a New Order using the button below.*

WE GUARANTEE, THAT YOUR PAPER WILL BE WRITTEN FROM SCRATCH AND WITHIN A DEADLINE.