Essay
Suppose that the total product of labor per hour) for a firm manufacturing small calculators is given by
TPL = 144L - 1.5L2.
a. Find the MPL function.
b. How many workers should the restaurant employ if the wage rate is $18.00 per hour, the average price of a calculator is $8.00, and the average cost per calculator of the raw materials is $2.00? Why?
Correct Answer:
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a. MPL = dTPL/dL = 144 - 3L
b. The firm sh...View Answer
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Correct Answer:
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b. The firm sh...
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