short-term production function: Q = 50L + 6L2 - 0.5L3
a. When does the law of diminishing returns begins to take effect?
b. Calculate the value range of labor during phases 1, 2 and 3.
c. Suppose that each worker makes $ 10 an hour and works 40 hours per week. How many workers we hire if the product price is $ 10. Suppose the price falls to $ 7.50. What would be a short-term impact on the production of the company. What would be the long term.