A competitive firm has the short-run production function given by Q = 4L2 - 0.08L3 Assume the firm's fixed cost is $15,000, the labor cost (wage and benefits) is $70 per unit, and the price of the good in the market is $20.
(a) What is the firm's profit maximizing level of output?
(b) What is the firm's level of employment and its profit?