QL=-L^3+8L^2+12 then find (a)optimal level of labour employment (b)optimal out put level(c) labour employment at which maximum out put is produced (hint;TPL is maximum at MPL=0)
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Expert's answer
2018-02-10T06:19:07-0500
QL=-L^3+8L^2+12 then find (a) optimal level of labour employment is at: QL' = 0, -3L^2 + 16L = 0, L(16 - 3L) = 0, L = 0 or L = 5.33. (b) optimal output level can't be found without additional data. (c) labour employment at which maximum out put is produced can't be found without additional data.
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