The profit-maximizing levels of labor and output is 25 and 5
How to solve for the profit-maximizing level of labor and output
We have wage given as $10
VMPL = 100 dollars * MPL
The profit-maximizing level of labor and output is achieved where VMPL = wage(w), where
w = $10. [Given in question]
VMPL = $100 * MPL
VMPL = $100 * 0.5* (L^-1/2)
10 = 100 * 0.5* (L^-1/2)
We would have the value of L = 25
Next we have to find the quantity
Q = 1^1/2 * L^1/2 =
1^1/2 * (25)^1/2 =
= 5
Read more on profit maximization here: https://brainly.com/question/13464288
#SPJ4
