Use the following profit function (per worker) for the Blue Delta Faucet Company to answer this question. P(e) = 40e – (
Posted: Sun Jul 03, 2022 6:55 am
Use the following profit function (per worker) for theBlue 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 theprofit-maximizing level of effort for the firm to set forworkers?
a.
There is no effort level that maximizes profits in thiscase.
b.
3.16 hours per day.
c.
8 hours per day.
d.
10 hours per day.
e.
12 hours per day.
P(e) = 40e – (2e2 + 100)
Note that P = firm profits and e = worker-hours per day.Assume that effort is observed perfectly. What is theprofit-maximizing level of effort for the firm to set forworkers?
a.
There is no effort level that maximizes profits in thiscase.
b.
3.16 hours per day.
c.
8 hours per day.
d.
10 hours per day.
e.
12 hours per day.