Explore BrainMass
Share

Explore BrainMass

    optimal production level

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    1. The production function to build a playground swing is:

    Q = 15 + 8L - 0.6L2

    Where:
    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?

    © BrainMass Inc. brainmass.com October 9, 2019, 9:27 pm ad1c9bdddf
    https://brainmass.com/economics/production/optimal-production-level-building-playground-swing-185427

    Solution Preview

    Please see the attached file.
    1. The production function to build a playground swing is:
    Q = 15 + 8L - 0.6L2
    Where:
    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 ...

    Solution Summary

    The solution determines optimal production level.

    $2.19