Question

You have been hired by Kia as manager for its Pakistan operations. Assume following is the shortrun production function at their assembly plant outside Karachi: Q = 10L2 – 0.5 L3 where L is variable input labor, Q is output of Cars assembled . Find the ranges of the three stages of production. 

Answer 1

$$\frac {\delta Q}{\delta L}=20L-1.5L^2$$

$$\frac {\delta ^2 Q}{\delta L^2}=20-3L$$

$$L=\frac {20}{3}$$

$$Q=296$$