2. A construction site uses two types of workers - skilled (S) and unskilled (U). They produce feet of new pavement (Q) per day according to the production function Q = 100S-5S² + 50U-5U² Skilled workers are paid $200 per day, while unskilled workers are paid $100 per day. The company pa $40,000 for equipment for the skilled workers. The company has a daily budget of $2,000 to hire skille and unskilled workers. a. How many skilled and unskilled workers should be hired in order to produce the most pavement? Show your work/thought process: b. What is the profit-maximizing Q?
2. A construction site uses two types of workers - skilled (S) and unskilled (U). They produce feet of new pavement (Q) per day according to the production function Q = 100S-5S² + 50U-5U² Skilled workers are paid $200 per day, while unskilled workers are paid $100 per day. The company pa $40,000 for equipment for the skilled workers. The company has a daily budget of $2,000 to hire skille and unskilled workers. a. How many skilled and unskilled workers should be hired in order to produce the most pavement? Show your work/thought process: b. What is the profit-maximizing Q?
Microeconomics: Principles & Policy
14th Edition
ISBN:9781337794992
Author:William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:William J. Baumol, Alan S. Blinder, John L. Solow
Chapter7: Production, Inputs, And Cost: Building Blocks For Supply Analysis
Section: Chapter Questions
Problem 9TY
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Question
![2. A construction site uses two types of workers - skilled (S) and unskilled (U). They produce feet of
new pavement (Q) per day according to the production function
Q = 100S -5S² + 50U-5U²
Skilled workers are paid $200 per day, while unskilled workers are paid $100 per day. The company paid
$40,000 for equipment for the skilled workers. The company has a daily budget of $2,000 to hire skilled
and unskilled workers.
a. How many skilled and unskilled workers should be hired in order to produce the most pavement?
Show your work/thought process:
b.
What is the profit-maximizing Q?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff21345a7-1409-4345-9a31-7c5184a5faa1%2Ff155cf7f-7d37-4ae0-9c79-2f98f45da9f7%2F9lges4_processed.jpeg&w=3840&q=75)
Transcribed Image Text:2. A construction site uses two types of workers - skilled (S) and unskilled (U). They produce feet of
new pavement (Q) per day according to the production function
Q = 100S -5S² + 50U-5U²
Skilled workers are paid $200 per day, while unskilled workers are paid $100 per day. The company paid
$40,000 for equipment for the skilled workers. The company has a daily budget of $2,000 to hire skilled
and unskilled workers.
a. How many skilled and unskilled workers should be hired in order to produce the most pavement?
Show your work/thought process:
b.
What is the profit-maximizing Q?
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