A Short-Run Production Function Was Estimated As $Q = - 0.002 L ^ { 3 } + 0.16 L ^ { 2 }$

question 23

Multiple Choice

A short-run production function was estimated as $Q = - 0.002 L ^ { 3 } + 0.16 L ^ { 2 }$ At 60 units of labor,what is marginal product?

• A)4.1
• B)1.2
• C)6.3
• D)2.4
• E)-2.4

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Definitions:

Total Revenue

The total amount of money received by a company from its sales of goods or services, before any expenses are subtracted.

Profit

The financial benefit that is realized when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.

Economic Profits

Profits exceeding the total cost of capital, including both the cost of debt and the opportunity cost of equity capital.

Explicit Costs

Expenses directly incurred in the course of running a business, such as wages and materials.