If the price of each calculator is $11, find the profit maximizing wage as a function of number of workers used (L). W =

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
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Chapter1: Making Economics Decisions
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In this question you will derive a simple labour demand curve.
Suppose that the number of calculators a firm can produce per hour (TP) given a certain number of workers (L), is given by:
TP = 396 ln(L +17) + 13L
The cost of using each worker is just their hourly wage (w). So the total labour cost is C = wL.
If the price of each calculator is $11, find the profit maximizing wage as a function of number of workers used (L).
W=
Transcribed Image Text:In this question you will derive a simple labour demand curve. Suppose that the number of calculators a firm can produce per hour (TP) given a certain number of workers (L), is given by: TP = 396 ln(L +17) + 13L The cost of using each worker is just their hourly wage (w). So the total labour cost is C = wL. If the price of each calculator is $11, find the profit maximizing wage as a function of number of workers used (L). W=
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