Marginal revenue product = 40 - q/10. The cost of labor wl = 10. The production function is q = 20l. What is the profit maximizi

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2 years ago

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ng quantity of labor to hire? answer is an integer

1 answer:

Dennis_Churaev [7] · Answer 1 · 2023-03-13T14:24:51+03:00

A function assigns the values. The profit-maximizing quantity of labour to hire is 15 workers.

<h3>What is a Function?</h3>

A function assigns the value of each element of one set to the other specific element of another set.

Given the marginal revenue product, MRP = 40-(Q/10)

The cost of labour, WL = 10

The production function, Q = 20 L

For profit maximizing quantity of labour to hire where,

MRP = WL

40-(Q/10) = 10

40-(20L/10)=10

40-2L=10

-2L = 10-40

-2L=-30

L=15

Hence, the profit-maximizing quantity of labour to hire is 15 workers.

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