Stan is a mild-mannered Economics professor at the University of Idaho. One day he is casually going about his business when some unfortunate events occur. First, a student is openly playing a game on his (or her) phone while Stan is lecturing. This student didn't even move to the back row to perform such activities, as decorum would dictate. Second, a student makes a comment that Stan's class is "a joke". As usual, Stan cries himself to sleep, but at least this night he had a specific reason. The next day he decides he will quit teaching and start a squirrel hunting business on the UI campus. He uses his Economics background to determine the productivity function: Q=20/Square root L , where Q = number of squirrels caught and L = number of students hired each day to work the traps. This means his marginal productivity of labor is: MPL=10/ square root L . Stan can rent a fixed number of traps for $200 per day.

Suppose Stan can sell each squirrel (pelt/meat) for $24. He must pay each worker $80 per day. What will Stan's short-run labor demand be? How much will his company produce, and how much daily profit should he expect?