Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A producer of kitchen tools has estimated the following short-run production function for their spatulas, which they produce in a plant using labor. Labor, on

A producer of kitchen tools has estimated the following short-run production function for their spatulas, which they produce in a plant using labor. Labor, on average, costs the firm $15.50 an hour. The marginal revenue the firm receives from each shovel is $43.

Q= 6.7 + 8L -1.9L2

A. What is the optimal amount of labor-hours the firm should use?

B. At this level of labor, how many spatulas are produced?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Macroeconomics A European Perspective

Authors: Olivier Blanchard, Alessia Amighini, Francesco Giavazzi

4th Edition

1292360895, 9781292360898

More Books

Students also viewed these Economics questions

Question

Explain this statement: Goals are dreams with deadlines.

Answered: 1 week ago