A firm’s production function is Q = 10 + 30L - .5L2+ 30K – K2, and its competitive demand function is PQ= MRQ = d = $40. The prices of L and K are PL = $6 and PK= $12. Suppose K is fixed at K =10. Use Excel Solver to find the profit-maximizing quantity (Q). A.660. B.684. C.764. D.788. E.864.

Answer A firm’s production function is Q = 10 + 30L - 0.5L2 + 30K – K2 MPL = = 40 - L At…

Answered: A firm’s production function is Q = 10…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A firm’s production function is Q = 10 + 30L - .5L²
+ 30K – K², and its competitive demand function is P_Q
= MR_Q = d = $40. The prices of L and K are P_L = $6 and P_K
= $12. Suppose K is fixed at K =10. Use Excel Solver to find the profit-maximizing quantity (Q).

A.

660.

B.

684.

C.

764.

D.

788.

E.

864.

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