Assume the production function of a farmer who keeps a poultry is q=f(L) = 100L05, where Lis labor (i.e., the number of people working on the farm) and q is output (number of birds). If the wage rate is w= 2 and the price per bird is p = 5, how many people should he employ? Explain your answer.

Assume the production function of a farmer who keeps a poultry is q=f(L) = 100L05, where Lis labor (i.e., the number of people working on the farm) and q is output (number of birds). If the wage rate is w= 2 and the price per bird is p = 5, how many people should he employ? Explain your answer.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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9. Assume the production function of a farmer who keeps a poultry is q = f(1) = 100L05,
where Lis labor (i.e., the number of people working on the farm) and q is output (number
of birds). If the wage rate is w = 2 and the price per bird is p = 3, how many people should
he employ? Explain your answer.

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