How many workers should your restaurant employ

Assignment Help Business Economics
Reference no: EM132244189

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?

(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:

Reference no: EM132244189

Questions Cloud

Value of the property : Property taxes are not very popular. People might dislike other taxes just as much, but feel powerless to change them.
Develop stress management seminar for the employees : Imagine you are a new employee in a human resource (HR) department. Your first task is to develop a stress management seminar for the employees.
Choices of financing current expenditures : If raising taxes or borrowing are your only two choices of financing current expenditures, which would you choose, and why, if you were in charge of setting
Identify and explain a historical example : Conflict Theory in Applying Theory to Generalist Social Work Practice. How does conflict theory inform social justice and social advocacy?
How many workers should your restaurant employ : This will provide insight into the idea of the optimal number of workers and the value of the marginal product of labor.
Benefit or detriment to operations management globally : Explain how Lean Systems provide benefit or detriment to Operations Management globally.
Discuss the key elements of the marketing plan : Corporate strategy begins with marketing and understanding the key elements of the marketing plan. For IKEA, describe the following elements of its marketing.
Characteristics of the competitive market equilibrium : Use a well-labeled graph to illustrate all of the characteristics of the competitive market equilibrium you have solved for.
China shirt factories invest in efficiency as wages rise : Does the use of e-commerce data and information sharing has a positive impact on manufacturing productivity, efficiency, and external logistics infrastructure?

Reviews

Write a Review

Business Economics Questions & Answers

  Estimates of the average cost of developing a new drug

While generics account for more than three quarters of all prescription drugs sales by volume, they account for only 10% of all prescription sales revenues. It was not until after World War II, that it became clear that control over drug safety mecha..

  How would an increase in airfares affect the number

Elucidate how would an increase in airfares affect the number of highway fatalities in any one year

  Limitations on the maximum expansion of money supply

Why is an individual bank more limited in its ability to create money than the banking system as a whole? What are the limitations on the maximum expansion of money supply? What is the effect on the deposit expansion process if banks choose to hold m..

  What is one problem with using price indexes

What is one problem with using price indexes to measure inflation? If workers become discouraged, what, if anything, will happen to the unemployment rate.

  Minimize the sum of absolute values of errors

Suppose that you have to fit with an OLS regression the following four points on the X-Y plane: (0; 0), (0; 1), (1; 0) and (1; 1). You would do that by minimizing a sum of squared errors. What would be the values of ^ and B1 and B0? Suppose now that ..

  Why might governments nationalize firms

Why might governments nationalize firms and do they have added advantage or unfair one over the private owned firms? What are the different forms of terrorism and how can international managers meet this challenge?

  Facing recessionary gap-using fiscal policy

Assume we are facing a recessionary gap (RG) of $20 million. Explain the tools the government has at its disposal to close the gap, using FISCAL policy and in what direction it would use them, given that we have a RG (increase, decrease?). Give the e..

  Businesses lead and share information for sustainability

How global businesses lead and share information for sustainability? Please give me an example of one local business and one global business.

  Firm buying labor in a perfectly competitive market

The wage paid by a firm buying labor in a perfectly competitive market: The wage paid by a firm buying labor in a perfectly competitive market:

  Draw the budget constraint and optimal

Omar will earn $20,000 this year and $50,000 next year. He can borrow and lend at an interest rate of 25%. He decides to borrow $15,000 this year. Draw Omar’s budget constraint for consumption spending this year and next, label the amounts at the end..

  How many people were at risk of head colds on 1 august 2014

Twenty had a head cold on 1 June 2014, which conferred immunity for 3 months. How many people were at risk of head colds on 1 August 2014?

  Prepare a report on the selling prices of the homes

Refer to the Real Estate data, which reports information of homes sold in the Goodyear, Arizona, area during the last year. Prepare a report on the selling prices of the homes.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd