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#### CollegeGuy

##### New member

- Jul 23, 2013

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(a)

A firm’s short-run production function is given by Q = L2e-0.01L where Q = output and

L = labour. Find the value of L that maximises the average product of labour.

(b)

Using derivatives, show that the rule for profit maximisation is:

MR = MC and (MR)’ < (MC)’

Where MR = marginal revenue and MC = marginal cost.

(c)

Find the consumer’s surplus at Q = 8 for the demand function P = 100 – Q2.