Asked by
Carlos Andres
on Dec 01, 2024
Verified
The production function is given by F(L) =6L2/3.Suppose that the cost per unit of labor is $16 and the price of output is 16, how many units of labor will the firm hire?
A) 64
B) 192
C) 32
D) 128
E) None of the above.
Production Function
A mathematical expression that describes the relationship between input factors of production (like labor and capital) and the output of goods or services.
Labor
Labor refers to the human effort, both physical and mental, used in the production of goods and services.
Output
The quantity of goods or services produced in a given time period by a firm, industry, or economy.
- Grasp the association between input expenses, output valuations, and the enhancement of profit margins.
- Employ production functions to ascertain the optimal input quantities for profit enhancement.
- Determine how alterations in input and output prices impact the levels of inputs that maximize profit.
Verified Answer
HJ
Learning Objectives
- Grasp the association between input expenses, output valuations, and the enhancement of profit margins.
- Employ production functions to ascertain the optimal input quantities for profit enhancement.
- Determine how alterations in input and output prices impact the levels of inputs that maximize profit.