Question
A Tile Installer earns profit (P) which is dependent on the square footage of tiles installed (Q). This profit is determined by the function:
A Tile Installer earns profit (P) which is dependent on the square footage of tiles installed (Q). This profit is determined by the function: P(Q) = 4Q0.5 + Q. Further, the relationship between square footage of tiles installed (Q) and time spent on the job in hours (L) is captured by the production function: Q(L) = 60L0.9. During every hour, the Tile Installer takes a 6 mins break (0.1 hour) to take a snack, relax or do anything else as he wishes. This means the new production function becomes: Q(L) = 60(0.9L) 0.9. Use the new production function to recalculate the marginal profit at 12 hours and interpret the answer. (5 points)
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Business Statistics A Decision Making Approach
Authors: David F. Groebner, Patrick W. Shannon, Phillip C. Fry
9th Edition
013302184X, 978-0133021844
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