. This will provide insight into the idea of the optimal number of workers and the value of the marginal product of labor.
If wages in the restaurant is $11.00 per hour and the price of a Hamburger is $4.40 and the production function for the workers is:
Q = 5L – 0.5L2
a. How many workers should Your Restaurant employ during the lunch hour to maximize profits? 1 Point
(note—the value of the marginal product of labor and the marginal revenue product are the same)
We maximize profits which are total revenues less total costs: