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)

Answer rating: 100% (QA)

To maximize profit your friend should hire labor until the marginal revenue product of ... View the full answer