Question

Consider the folowing short run production function Q=6L2-0.4L3 how much is labor at each stae of production

Answer 1

$Q=6L^2-0.4L^3$

Differentiating Q w.r.t. L:

$\frac{\delta Q}{\delta L}=12L-1.2L^2$

Equate $\frac{\delta Q}{\delta L}=0$

$12L-1.2L^2=0$

Solving the equation quadratically, we get:

$L=\frac{-12}{-2.4}$

$L=5.$