1. The production function to build a playground swing is:
Q = 15 + 8L - 0.6L2
Q is the total number of swings built in an hour
L is the labor of one worker
If it costs $10 per hour for a laborer and each swing is sold for $20 and there are no material costs, how many laborers should you hire?
How many swings will the company produce per hour at optimal labor input?
What is the company's hourly profit at optimal labor input?
2. Given the following Total Cost curve:
TC = 200 + 50Q + 2Q2
What is the Marginal Cost?
What is the Average Cost?
What is the optimal production level where production costs are the lowest per unit?
Determine optimal production level.