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Labour hours and q the length of the fence in feet

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Question 1: Fence Right is a firm that supplies and installs fence. Its output follows the production function Q = 20L - 0.5L2; where L denotes labour hours and Q the length of the fence in feet. The firm hires labour at a wage of $25 per hour. Hint: MRPL = MRC

a) DD has received an offer to install 200 feet of fence for a price of $480. Should DD accept the offer?

b) What offer would be profitable if the company desires a price of $5 per foot of fence installed (show all workings)?

Reference no: EM131251884

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