Compute a firms profit from production function


Compute a firm's profit from production function.

Assume that a firm faces the following production function, f (L) =2L0.5 .Furthermore, although the firm cannot set wages, it can set prices, and its inverse demand curve is p=10-f (L). The firm pays workers a wage of $1.

a) How much does the firm produce? Show your work.

b) What are this firm's profits? Show your work.

Request for Solution File

Ask an Expert for Answer!!
Business Economics: Compute a firms profit from production function
Reference No:- TGS017888

Expected delivery within 24 Hours