Unformatted text preview: L ) when 4 units of labor are utilized. i. ( Hint : remember that MP L is dQ/dL, or the derivative of the prod function with respect to L.) b) Suppose the firm can hire labor at a wage of $5 per hour and output can be sold at a price of $25 per unit. Determine the profit-maximizing levels of labor and output. i. ( Hint : Remember that the firm maximizes its profit when VMP = P * MP L = w ) C:\ My Documents\1-Man Ec 387\1 - Winter 2010\class 9 – cost functions\4de001d66eecafd7f0ccc891719cb07c3b499444.doc 1...
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This note was uploaded on 12/03/2011 for the course MANEC 387 taught by Professor Crawford,l during the Fall '08 term at BYU.
- Fall '08