The production function of an online retailer that hires unskilled (U) and semiskilled (S) workers in its
Question:
The production function of an online retailer that hires unskilled (U)
and semiskilled (S) workers in its distribution division is given by the equation Q(U,S) = 2U + 4S.
a. What is the marginal product of unskilled labor?
b. What is the marginal product of semiskilled labor?
c. Unskilled workers earn the minimum wage of $7.25 per hour and semiskilled workers are paid $10 per hour. Both worker types work 40 hours a week. If the weekly operating budget is $12,000, how many skilled and unskilled workers should the distribution division hire?
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Related Book For
Managerial Economics: Tools For Analyzing Business Strategy
ISBN: 307174
1st Edition
Authors: Thomas J Webster
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