In the short run, we assume that capital is a fixed input and labor is a variabl
ID: 1219970 • Letter: I
Question
In the short run, we assume that capital is a fixed input and labor is a variable input so the firm can increase output only by increasing the amount of labor it uses. In the short-run, the firm's production function is q = f(L, K), where q is output, L is workers, and K is the fixed number of units of capital. A specific equation for the production function is given by: q = 8KL+ 5L^2 - (1/3)L^3 or, when K = 20, q = (8 x 20 x L) + 5L^2 - (1/3)L^3 The level of output q for 6 units of labor input is (enter your response rounded up to two decimal places).Explanation / Answer
Q = 160L + 5*(L)^(2)-(1/3)*(L)^(3)
=160*6 + 5*((6)^(2))-((1/3)*((6)^(3)))
=1068 units