Question
Good morning kindly help with this question full calculations: In the Elwyn Company, the relationship between output and the number of hours of skilled labour
Good morning kindly help with this question full calculations: In the Elwyn Company, the relationship between output and the number of hours of skilled labour (S) and unskilled labour (U) is
e : 3005 + 200U - 0.252 - 0.3U2; the hourly wage of skilled labour is N$l0 and the hourly iage of unskilled labour is N$5. The firm can hire as much labour as it wants at these wage rates. (i) Elwyn's chief engineer recommends that the firm hire 400 hours of skilled labour and 100 hours of unskilled labour. Evaluate this recommendation. [6 Marksl (ii) If the Elwyn Company decides to spend a total of N$5000 on skilled and unskilled labour, how many ho.rtt of each type of labour should it hire? [5 Marks] (iii) If the price of a unit of output is N$10 (and does not vary with output) how many hours of unskilled labour should the company hire?
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