Trisha's Fashion Boutique production function for dresses is y(K, L) = K^1/2L^1/3, where K is the number of sewing machines and L is the amount of labor hours employed. Trisha pays $15 per labor hour and sells each dress for $87.50. Also, Trisha currently has 4 sewing machines. Fill in the table below. How many units of labor will Trisha employ before the value of the marginal product of labor is less than the cost of a labor hour?

Question

Trisha's Fashion Boutique production function for dresses is y(K, L) = K<sup>1/2</sup>L<sup>1/3</sup>, where K is the number of sewing machines and L is the amount of labor hours employed. Trisha pays $15 per labor hour and sells each dress for $87.50. Also, Trisha currently has 4 sewing machines. Fill in the table below. How many units of labor will Trisha employ before the value of the marginal product of labor is less than the cost of a labor hour?

Quizplus · Accepted Answer

The Answer of Trisha's Fashion Boutique production function for dresses is y(K, L) = K^1/2L^1/3, where K is the number of sewing machines and L is the amount of labor hours employed. Trisha pays $15 per labor hour and sells each dress for $87.50. Also, Trisha currently has 4 sewing machines. Fill in the table below. How many units of labor will Trisha employ before the value of the marginal product of labor is less than the cost of a labor hour?

Trisha's Fashion Boutique Production Function for Dresses Is Y(K, L)