Krusty Krabs has two burger locations. The first location has marginal productivity ofMPL400 - 2L1=. The second location has marginal productivity ofMPL₂= 200 L₂. If there are 100 labors altogether, what is the allocation of labor to each of the twolocations?L₁ = 100, L2 = 0L₁ = 0, L2 = 100L₁ = 50, L2 = 50L1 = 100, L2100, L2 = 100Does not matter, as long as all 100 labors are allocated.

Marginal product is the change in Total product due to an additional labor hired.=> MP = Change…

Krusty Krabs has two burger locations. The first location has marginal productivity of MPL₁ 400 - 2L1 = . The second location has marginal productivity of MPL₂= 200 - L₂ L2 . If there are 100 labors altogether, what is the allocation of labor to each of the two locations? L₁ = 100, L2 = 0 L₁ = 0, L2 = 100 L1 = 50, L2 = 50 L₁ = 100, L2 = 100 Does not matter, as long as all 100 labors are allocated.

Krusty Krabs has two burger locations. The first location has marginal productivity of MPL₁ 400 - 2L1 = . The second location has marginal productivity of MPL₂= 200 - L₂ L2 . If there are 100 labors altogether, what is the allocation of labor to each of the two locations? L₁ = 100, L2 = 0 L₁ = 0, L2 = 100 L1 = 50, L2 = 50 L₁ = 100, L2 = 100 Does not matter, as long as all 100 labors are allocated.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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