Use the following information to answer the questions that follow.
Nicky L,owner of NLD Incorporated,knows that the marginal product of labor (MPL)for his workers can be defined as follows:
MPL = 32 - L
The total output a given level of workers can produce is found as:
Q = 32L - L 2
He also knows that the price of his output is $3.His profits can be found as:
Profit = P
Q - W
L
-If the wage is $8 and the price of a cupcake is $4,find King Kupcake's profits at the optimal amount of labor.
A)$2,200
B)$2,600
C)$4,600
D)$5,000
E)$7,500

Question

Use the following information to answer the questions that follow.
Nicky L,owner of NLD Incorporated,knows that the marginal product of labor (MPL)for his workers can be defined as follows:
MPL = 32 - L
The total output a given level of workers can produce is found as:
Q = 32L - L 2 
He also knows that the price of his output is $3.His profits can be found as:
Profit = P
  Q - W
  L
-If the wage is $8 and the price of a cupcake is $4,find King Kupcake's profits at the optimal amount of labor. 
A)$2,200 
B)$2,600 
C)$4,600 
D)$5,000 
E)$7,500

Quizplus · Accepted Answer

The Answer of Use the following information to answer the questions that follow.
Nicky L,owner of NLD Incorporated,knows that the marginal product of labor (MPL)for his workers can be defined as follows:
MPL = 32 - L
The total output a given level of workers can produce is found as:
Q = 32L - L 2 
He also knows that the price of his output is $3.His profits can be found as:
Profit = P
  Q - W
  L
-If the wage is $8 and the price of a cupcake is $4,find King Kupcake's profits at the optimal amount of labor. 
A)$2,200 
B)$2,600 
C)$4,600 
D)$5,000 
E)$7,500

Use the Following Information to Answer the Questions That Follow