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
Chapter11: Profit Maximization
Section: Chapter Questions
Problem 11.9P
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with a preferably written solution, please help in finding answer to part d. thank you!
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why is 1 the numerator over x + 2000 when you set it as u
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