Assume the price of output is p = 10
dollars, the marginal product of labor is
given by the equation...

Question

Assume the price of output is p = 10
dollars, the marginal product of labor is
given by the equation MPL= 20-(1/2)L, and the price of
labor is wL= 100

dollars. Then, the optimal quantity of labor
is
a) 5 workers
b) 10 workers
c) 20 workers
d) 25 workers

David · Accepted Answer

Assume the price of output is p = 10 dollars, the marginal product of labor is  
given by the equation MPL = 20 - (1/2)L, and the price of labor is wL = 100 
dollars. Then, the optimal quantity of labor is 
a) 5 workers 
b) 10 workers 
c) 20 workers 
d) 25 workers 
Answer:

Assume the price of output is p = 10 dollars, the marginal product of labor is given by the equation MPL= 20-(1/2)L, and the price of labor is wL= 100 dollars. Then, the optimal quantity of labor is...

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