Suppose output is produced using only labor according to the production function

Question

Suppose output is produced using only labor according to the production function Q = 5L –L^2. If the price of output is $10 and the cost of labor is $10, what is the profit maximizing amount of labor that should be employed? Please explain your answer Answer a. 2 units b. 10 units c. 2.5 units d. 0 units Suppose output is produced using only labor according to the production function Q = 5L –L^2. If the price of output is $10 and the cost of labor is $10, what is the profit maximizing amount of labor that should be employed? Please explain your answer 2 units 10 units 2.5 units 0 units a. 2 units b. 10 units c. 2.5 units d. 0 units

Explanation / Answer

2.5 units
c. 2.5 units

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