Cost parameter, Managerial Economics

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A toy manufacturer makes output according to the production function:

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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?

 

 


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