Problem 3. The marginal product of labor (i.e., the increase in total output if one more worker is employed) is equal to 5,000/x+2000 where x is the number or employees. Currently the firm employes 500 people and produces 1200 units of product. a) Using integrals, find the production function Q(x), i.e., find how much the firm will produce (Q) as a function of how many people it employs (x). b) If the wage is equal to $100 per worker and the firm is able to sell its product for $70 per unit, how many people the firm needs to employ to maximize its profit? Note that the
Problem 3. The marginal product of labor (i.e., the increase in total output if one more worker is employed) is equal to 5,000/x+2000 where x is the number or employees. Currently the firm employes 500 people and produces 1200 units of product. a) Using integrals, find the production function Q(x), i.e., find how much the firm will produce (Q) as a function of how many people it employs (x). b) If the wage is equal to $100 per worker and the firm is able to sell its product for $70 per unit, how many people the firm needs to employ to maximize its profit? Note that the
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
with a preferably written solution, please help in finding answer to part d. thank you!
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps with 6 images
Follow-up Questions
Read through expert solutions to related follow-up questions below.
Follow-up Question
why is 1 the numerator over x + 2000 when you set it as u
Solution
by Bartleby Expert
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education