A firm has following short-run production function:
Q=50L+6L^2-0.5L^3
Q=quality of output per week
L= number of worker
a. When dose the law of diminishing returns take effect?
b. Calculate the wage of the values for labor over which stage I, II, and III occurs.
C. Assume each worker is paid $10 per hour and works a 40-hours week. How many workers should the firm hire if the price of the output is $ 10? Suppose the price of the output falls to $7.50.What do you think would be the short-run impact on the firm's production? The long-run impact?