Answer to Question #158019 in Macroeconomics for iqra

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

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

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

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

$$Q=296$$