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?
b. Compute the maximum profit at Your Restaurant. (noteconsider that profit involves Total Revenue and Total Costs).
c. Compute the profit created if You hire an additionalworker. Explain why it is or is not profit maximizing to hire an additional worker
d. Suppose instead that You wants to keep the lines as short as possible by maximizing production. How many workers should You employ during the lunch hour?
e. The Value of the Marginal Product of Labor Equation is an important equation.Explain the challenge of paying these workers more.
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Public Personnel Administration And Labor Relations
Authors: Norma M Riccucci
1st Edition
1317461754, 9781317461753
