When a particular firm is fully utilizing its capital, its output is given by Y = 10 × L0.5. The cost of labor is $1 per unit. To maximize profit, how many units of labor should this firm use?
A) 25
B) 5
C) 3.16
D) 100
E) 50

Question

Quizplus · Accepted Answer

The Answer of When a particular firm is fully utilizing its capital, its output is given by Y = 10 × L0.5. The cost of labor is $1 per unit. To maximize profit, how many units of labor should this firm use?
A) 25
B) 5
C) 3.16
D) 100
E) 50

When a Particular Firm Is Fully Utilizing Its Capital, Its