day according to the production function Q = 100S -5S + 50U – 5U 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:

day according to the production function Q = 100S -5S + 50U – 5U 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:

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

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 -5S + 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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