Question
If wages in the restaurant is $12.00 per hour and the price of a Hamburger is $4.00 and the production function for the workers is:
If wages in the restaurant is $12.00 per hour and the price of a Hamburger is $4.00 and the production function for the workers is:
Q = 4L - 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
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Economics of Strategy
Authors: David Besanko, David Dranove, Mark Shanley, Scott Schaefer
6th edition
978-1118273630, 111827363X, 978-1118319185
