You produce shoes (Q) with labor (L) and capital (K). The production process is as so: Q = 400L - 20L2 + 600K – 10K2 The cost of labor is $20 and the cost of capital is $30. You have a budget of $550. How many units of labor (L) should you employ? Enter as a value.

You produce shoes (Q) with labor (L) and capital (K). The production process is as so: Q = 400L - 20L2 + 600K – 10K2 The cost of labor is $20 and the cost of capital is $30. You have a budget of $550. How many units of labor (L) should you employ? Enter as a value.

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter7: Proudction Costs

Section: Chapter Questions

Problem 10SQ

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Question

You produce shoes (Q) with labor (L) and capital (K). The production process is as so:
Q = 400L - 20L²+ 600K – 10K²
The cost of labor is $20 and the cost of capital is $30. You have a budget of $550.
How many units of labor (L) should you employ?
Enter as a value.

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