One of your friends owns a berry farm in South Florida. Her farm's short-run production function is
Fantastic news! We've Found the answer you've been seeking!
Question:
One of your friends owns a berry farm in South Florida. Her farm's short-run production function is 50 E0.7 and the marginal product of employment is 35 E-0.3, where E is the number of labor employed (in terms of total hours). Suppose the wage rate is $34 and the price of berry is $9 per pound. She wants to maximize her farm's profit by hiring the optimal amount of labor. How much labor she should hire? (rounding to the nearest integer)
Related Book For
Posted Date: