Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

a)Consider the Labor Economics Question.This will provide insight into the idea of the optimal number of workers and the value of the marginal product of

a)Consider the Labor Economics Question.This will provide insight into the idea of the optimal number of workers and the value of the marginal product of labor.

If wages in the restaurant is $14.00 per hour and the price of a Hamburger is $4.20 and the production function for the workers is:Q = 15L - 0.5L2

a.How many workers should Your Restaurant employ during the lunch hour to maximize profits?1 Point

(notethe value of the marginal product of labor and the marginal revenue product are the same)We maximize profits which are total revenues less total costs:

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

Environmental And Natural Resource Economics

Authors: Thomas H Tietenberg, Lynne Lewis

10th Edition

1315523965, 9781315523965

More Books

Students also viewed these Economics questions

Question

2. Ask questions, listen rather than attempt to persuade.

Answered: 1 week ago