Dirt Diggers (DD)is a firm that excavates roadside ditches to lay drainpipe.Its output follows the production function: Q = 10L - 0.1L2,where L denotes labor hours and Q the length of the ditch in meters.The firm hires labor at a wage of $12 per hour.DD has received an offer to excavate 250 meters for a price of $500.Should it accept the offer? Suppose DD is offered as much or as little excavation work as it desires at a price of $2.00 per meter,what is the optimal quantity that it should choose to excavate?
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