Currently, Trisha's Fashion Boutique uses 2 sewing machines in the production of dresses (K represents the number of sewing machines). Trisha's marginal product of labor function is
MP_L (L, K) =
- 0.01L. Trisha can sell all the dresses she produces for $150 per unit and hire all the labor units she desires at $25 per unit. What happens to Trisha's optimal labor employment if she increases the number of sewing machines to 4?

Question

Currently, Trisha's Fashion Boutique uses 2 sewing machines in the production of dresses (K represents the number of sewing machines). Trisha's marginal product of labor function is
MP_L (L, K) =

- 0.01L. Trisha can sell all the dresses she produces for $150 per unit and hire all the labor units she desires at $25 per unit. What happens to Trisha's optimal labor employment if she increases the number of sewing machines to 4?

Quizplus · Accepted Answer

The Answer of Currently, Trisha's Fashion Boutique uses 2 sewing machines in the production of dresses (K represents the number of sewing machines). Trisha's marginal product of labor function is MP_L (L, K) = - 0.01L. Trisha can sell all the dresses she produces for $150 per unit and hire all the labor units she desires at $25 per unit. What happens to Trisha's optimal labor employment if she increases the number of sewing machines to 4?

Currently, Trisha's Fashion Boutique Uses 2 Sewing Machines in the Production