Eleanore runs an online accounting-services company and hires accountants by the hour in a remote area where
Question:
Eleanore runs an online accounting-services company and hires accountants by the hour in a remote area where she is the only employer of accountants. The inverse labor supply of accountants in that area is given by =150+0.5x, where stands for the hourly wage, and x stands for the number of work hours in a day (where x is the sum of work hours of all workers). Eleanore's only cost is the wage she pays the accountants. Because Eleanore sells the accounting services online, she faces a lot of competition. For simplicity, assume the online market for accounting services is perfectly competitive. Also for simplicity, assume that the marginal product of an accountant hour is constant at two account document preparations.
Suppose the market price for accounting services is $130.00per document. Assuming that Eleanore runs a profit-maximizing business, Eleanore must be contracting for accountant hours daily. (Round your answer to the nearest integer if necessary.) Eleanore will pay an hourly wage of $ . (Round your answer to the nearest two decimals if necessary.)