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1) A firm has a production function, = Q F(MH,H, K) A(MH) (H 7). The wage payed per hour is w. The firm must also
1) A firm has a production function, = Q F(MH,H, K) A(MH) (H 7). The wage payed per hour is w. The firm must also pay a cost of z for each worker hired and p for each manhour worked. The firm wants to minimize the cost of producing Q. a) (20 points] What is the first order condition for the optimal choice of em- ployees and hours? b) (10 points) What is the first order condition if workers must be paid double wages for overtime for all hours worked over 8 hours? c) (10 points) What is the first order condition if workers waste the first hour of work
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