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A construction site uses two types of workers – skilled (S) and unskilled (U). They produce feet of new pavement (Q) per day according to the production function Q = 100S -5S2 + 50U – 5U2 Skilled workers are paid $200 per day, while unskilled workers are paid $100 per day. The company paid $50,000 for equipment for the skilled workers. The company has a daily budget of $1,500 to hire skilled and unskilled workers.
a. How many skilled and unskilled workers should be hired in order to produce the most pavement? Show your work/thought process:
b. What is the profit-maximizing Q?
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