Question: You are the manager of Advanced Computers Inc., You have recently been furnished with the following production and cost information:

Q = 5K 2/3 L 1/3

Where K represents capital equipment and L is the number of hours worked per day. The company has spent $4,500 on 9 units of capital. If workers are paid $25 per hour, and computers are sold for $750 each. Find the following:

1. . The optimal number of hours used per day.
2. . The profit maximizing level of output.
3. . Total profits/losses incurred.

Price: $2.99

Solution: The downloadable solution consists of 2 pages
Deliverable: Word Document