# Calculating the optimal hours of labor

Firm XYZ measures its MP of labor curve to be the following MP = 4000 - 2L where L is the number of hours of labor hired per day. XYZ produces gadgets that are sold for $20 each and is able to hire workers for $10 per hour. How many hours of labor should XYZ hire each day to maximize its profits?

© BrainMass Inc. brainmass.com October 10, 2019, 5:33 am ad1c9bdddfhttps://brainmass.com/economics/labour-economics/calculating-optimal-hours-labor-509244

#### Solution Preview

Marginal Cost of worker=wage rate=$10 per hour

Marginal Revenue ...

#### Solution Summary

The solution describes the steps to calculate the optimal hours of labor.

$2.19