Suppose a profit-maximizing firm is the sole employer in a labor market and sells its final product in a perfectly competitive output market at a price of $18. How many workers (L) will the firm hire if the marginal product of labor is MPL = 43 - 2*L and the supply of labor is W = 3 + 2*L?

Answer rating: 100% (QA)

To maximize profit the firm will hire workers up to the point where the mar... View the full answer