Suppose that a firm is producing in the short run with output given by: Q = 64L - L2 The firm hires labor at a wage of $26 per hour and sells the good in a competitive market at P = $40 per unit. Find the firm’s optimal use of labor.

Suppose that a firm is producing in the short run with output given by: Q = 64L - L2 The firm hires labor at a wage of $26 per hour and sells the good in a competitive market at P = $40 per unit. Find the firm’s optimal use of labor.

Survey of Economics (MindTap Course List)

9th Edition

ISBN:9781305260948

Author:Irvin B. Tucker

Publisher:Irvin B. Tucker

Chapter10: Labor Market And Income Distribution

Section: Chapter Questions

Problem 22SQ

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Question

Suppose that a firm is producing in the short run with output given by:
Q = 64L - L²
The firm hires labor at a wage of $26 per hour and sells the good in a competitive market at P = $40 per unit. Find the firm’s optimal use of labor.
Enter as a value. ROUND TO THE NEAREST WHOLE NUMBER.

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