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Sunnyland Corporation has the following weekly revenue function Re) = 5400 + 144 Je with weekly production costs of $1,200. Its manager's disutility of effort is given by u(e) = 680 + 8e. Note that R = firm revenue and e = manager hours per week. Assume that effort is observed perfectly and the manager provides optimum amount of effort. How much effort will the manager provide each week? %3D %3D %3D 64 hours 25 hours 36 hours 81 hours 49 hours

Sunnyland Corporation has the following weekly revenue function Re) = 5400 + 144 Je with weekly production costs of $1,200. Its manager's disutility of effort is given by u(e) = 680 + 8e. Note that R = firm revenue and e = manager hours per week. Assume that effort is observed perfectly and the manager provides optimum amount of effort. How much effort will the manager provide each week? %3D %3D %3D 64 hours 25 hours 36 hours 81 hours 49 hours

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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Question 21 Sunnyland Corporation has the following weekly revenue function R(e) = 5400+144e with weekly production costs of $1,200. Its manager's disutility of effort is given by u(e) = 680 + 8e. Note that R = firm revenue and e = manager hours per week. Assume that effort is observed perfectly and the manager provides optimum amount of effort. How much effort will the manager provide each week? %3D !! 64 hours 25 hours 36 hours 81 hours 49 hours
Transcribed Image Text:Question 21 Sunnyland Corporation has the following weekly revenue function R(e) = 5400+144e with weekly production costs of $1,200. Its manager's disutility of effort is given by u(e) = 680 + 8e. Note that R = firm revenue and e = manager hours per week. Assume that effort is observed perfectly and the manager provides optimum amount of effort. How much effort will the manager provide each week? %3D !! 64 hours 25 hours 36 hours 81 hours 49 hours
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