Solved

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

Question 1

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.What is the profit-maximizing level of effort for the firm to set for workers?


A) There is no effort level that maximizes profits in this case.
B) 3.16 hours per day.
C) 8 hours per day.
D) 10 hours per day.
E) 12 hours per day.

Correct Answer:

verifed

Verified

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents