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Determining optimal combination of inputs

Q=10L-.5L2+24K-K2

Marginal revenue production function?
Optimal labor/capital values given a profit maximization goal?

Price of labor: $40
Price Capital: $80
Output sells for $10

Solution Preview

Q=10L-0.5L^2+24K-K^2

Total Revenue=Price(P)*output=10*(10L-0.5L^2+24K-K^2)

TR=100L-5L^2+240K-10K^2

Marginal Revenue Product of ...

Solution Summary

Solution describes the steps to determine marginal revenue product function. It also determines optimal combination of inputs.

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