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Use the Following Profit Function (Per Worker)for the Blue Delta

Question 17

Multiple Choice

Use the following profit function (per worker) for the Blue Delta Faucet Company to answer this question. P(e) = 40e - (2e2 + 100)
Note that P = firm profits and e = worker-hours per day.Assume that effort is observed perfectly.At this profit-maximizing level of effort for the firm,profits per worker will be:


A) $40.
B) $100.
C) $300.
D) $400.
E) none of the above.

Correct Answer:

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