PAY CAREFUL ATTENTION TO THE EQUATION. THIS IS NOT FOR THEQ=60L. PLEASE ANSWER CORRECTLY.
The Production Function of a perfectly competitive firm isQ = 80L +12L2 -0.5L3, whereQ = Output and L = labor input
a. At what value of L will Diminishing Returns take effect?
b. Calculate the range of values for labor over which stages I,II, and III occur?
c. Suppose that the wage rate is $30 and theprice of output is $2 per unit. How many workersshould the firm hire?
d. At what value of L will Q be at its maximum? What is themaximum amount of Q?
e. If demand forecasts predict
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