Question: Youve been given the following production function: q = 3E ((E^2)/4) Assume the market price for the good is $10. (a) Calculate the Q, MPE,

Youve been given the following production function: q = 3E ((E^2)/4)

Assume the market price for the good is $10.

(a) Calculate the Q, MPE, VMPE when E takes a value from 1-8 (ie - when E = 1, 2, 3,...).

(b) Assume the wage rate (w) is $8. Based on your answers in part a, how many workers should the firm hire? Explain.

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