Dirt Diggers (DD) is a firm that excavates roadside ditches to lay drainpipe. Its output follows the production function: Q = 10L - .1L², where Q denotes 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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The Answer of Dirt Diggers (DD) is a firm that excavates roadside ditches to lay drainpipe. Its output follows the production function: Q = 10L - .1L², where Q denotes 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?

Dirt Diggers (DD) Is a Firm That Excavates Roadside Ditches