What is the maximum production level?

Questions

Considering the previous supply line, determine if the following demand function corresponds to the market demand equilibrium stated above. QD = 3000 – 2p (15 points)

 

  1. The production function of a firm is described by the following equation Q = 10,000L− 3L² where L stands for the units of labour. (20 points).

 

  1. Draw a graph for this equation. Use the quantity produced in the y-axis, and the units of labour in the x-axis.
  2. b) What is the maximum production level?
  3. c) How many units of labour are needed at that point?

 

  1. Solve the following system of equations (10 points).

50x +20y =1800

10x + 3y =300