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 March 5, 2021, 12:27 am ad1c9bdddf
Marginal Cost of worker=wage rate=$10 per hour
Marginal Revenue ...
The solution describes the steps to calculate the optimal hours of labor.