The marginal product of labor at Trisha's Fashion Boutique is MP_L (L) =
- 0.01L. Trisha can sell all the output she can produce for $100 a unit. If Trisha pays a wage rate of $20 per unit of labor, calculate Trisha's optimal labor employment level. If the wage rate rises to $25 per unit, what happens to Trisha's optimal employment level?

Question

The marginal product of labor at Trisha's Fashion Boutique is MP_L (L) =

The marginal product of labor at Trisha's Fashion Boutique is MP<sub>L</sub> (L) = - 0.01L. Trisha can sell all the output she can produce for $100 a unit. If Trisha pays a wage rate of $20 per unit of labor, calculate Trisha's optimal labor employment level. If the wage rate rises to $25 per unit, what happens to Trisha's optimal employment level?

- 0.01L. Trisha can sell all the output she can produce for $100 a unit. If Trisha pays a wage rate of $20 per unit of labor, calculate Trisha's optimal labor employment level. If the wage rate rises to $25 per unit, what happens to Trisha's optimal employment level?

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The Answer of The marginal product of labor at Trisha's Fashion Boutique is MP_L (L) = - 0.01L. Trisha can sell all the output she can produce for $100 a unit. If Trisha pays a wage rate of $20 per unit of labor, calculate Trisha's optimal labor employment level. If the wage rate rises to $25 per unit, what happens to Trisha's optimal employment level?

The Marginal Product of Labor at Trisha's Fashion Boutique Is