Purchase Solution

# 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.

##### Solution Summary

Labor and cost functions are determined.

##### 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 ...

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