Cost parameter, Managerial Economics

A toy manufacturer makes output according to the production function:

2497_aa.png

where n is the number of workers employed by the firm, O is a technological parameter and g the workers' effort cost parameter. Assume the firm is profit maximizing.

a) Assume  the firm sells its products at a price p and pays its workers a fixed salary w. What is the optimal number of employees the firm should hire?

 

 

Posted Date: 3/26/2013 3:16:34 AM | Location : United States







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