Question

A firm’s production function is Q = 0 + 6L + 5L2 - .2L3 + 3K+...

A firm’s production function is Q = 0 + 6L + 5L2 - .2L3 + 3K+ 2K2- .2K3. The firm is currently producing output with a fixed amount of capital K =10. It hires labor with a wage rate of PL = Wage = 120. Suppose the firm is currently employing 10 units of L along with 10 units of K. The marginal cost of production is _____. Conduct an analysis using an Excel Spreadsheet and changing Labor by 1, 2, 3, etc., that is, use integer values of L only to solve this problem.

A.

2.56.
B.

3.65.
C.

4.84.
D.

7.14.
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