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C. suppose the firm can hire labor at a wage of $10 per hour and output can be sold at a price of $100 per unit. determine the profit-maximizing levels of labor and output.

Respuesta :

ogorwyne

The profit-maximizing levels of labor and output is 25 and 5

How to solve for the  profit-maximizing level of labor and output

We have wage given as $10

VMPL = 100 dollars * MPL

The profit-maximizing level of labor and output is achieved where VMPL = wage(w), where

w = $10. [Given in question]

VMPL = $100 * MPL

VMPL = $100 * 0.5* (L^-1/2)

10 = 100 * 0.5* (L^-1/2)

We would have the value of L = 25

Next we have to find the quantity

Q = 1^1/2 * L^1/2 =

1^1/2 * (25)^1/2 =

= 5

Read more on profit maximization here: https://brainly.com/question/13464288

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