In: Economics
(show all your work and calculations)
A certain production process employs two inputs¾labor (L) and raw materials (R). Output (Q) is a function of these two inputs and is given by the following relationship:
Q = 6L2 R2 - 0.1L3 R3
Assume that raw materials (input R) are fixed at 10 units
5 - Find the number of units of input L that maximizes the marginal product function
6 - Find the number of units of input L that maximizes the average product function
7 - Determine the boundaries for the three stages of production
8 - Find the number of units of input L where the law of Diminishing Marginal Returns starts to take effect first