Explore BrainMass

# The quadratic production function

Not what you're looking for? Search our solutions OR ask your own Custom question.

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

*Please describe how to calculate.

The harvesting of coffee is characterized by a quadratic production schedule as follows:

No. of Coffee
Laborers harvested
in kgms

0 0
1 200
2 450
3 620
4 780
5 850
6 920
7 950
8 980
9 1000
10 950

If the wage rate is \$100 a day and the price of green coffee is \$5.00 per kgm, find
(a) the quadratic production function,

(b) the optimum number of laborers to hire and (c) the maximum profit.

Â© BrainMass Inc. brainmass.com March 4, 2021, 10:15 pm ad1c9bdddf

#### Solution Preview

The quadratic production function is given by
, (1)
where Q = the quantity and L = number of laborers.
The production function can be estimated by the method of least squares by solving the following normal equations:
(2)
(3)
(4)
Where and

...

#### Solution Summary

The quadratic production function is applied in this case.

\$2.49