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Use the Following Profit Function (Per Worker)for the Blue Delta

Question 2

Multiple Choice

Use the following profit function (per worker) for the Blue Delta Faucet Company to answer this question. P(e) = 40e - (2e2 + 100)
Note that P = firm profits and e = worker-hours per day.Assume that effort is observed perfectly.At this profit-maximizing level of effort for the firm,profits per worker will be:


A) $40.
B) $100.
C) $300.
D) $400.
E) none of the above.

Correct Answer:

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