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    Labor and cost function

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    If you can help me solve this that would be helpful......

    Q= 2(K) 1/2 (L) 1/2

    K= capital equipment
    L= labor

    the company spent already $10,000.00 on 4 units of capital equipment in they own.
    due to economic condtions does not have the flexibilty needed to acquire addtional equipment......IF the workers at this firm are paid competitive wage of
    $100.00 a chair can sell for $200.00 wht is your profit-maximizing level of output and labor usage? What is your maximum profit?

    Showing the formulas to show how to see the max profit be illustrated.

    © BrainMass Inc. brainmass.com March 6, 2023, 1:55 pm ad1c9bdddf

    Solution Preview

    Q= 2(K) 1/2 (L) 1/2
    Given K= $10,000.00
    So the output function is
    Q= 2(10000) 1/2 (L) 1/2 =200 (L)1/2
    For ...

    Solution Summary

    Labor and cost functions are determined.