A total of 160 hours of labor are available each week at $15 per hour. Additional labor can be purchased at $25 per hour. Capital can be purchased in unlimited quantities at a cost of $45 per unit. If K units of capital and L units of labor are available during a week, then machines can be produced. Each machine sells for $270. How can the firm maximize its weekly profit?

Question

A total of 160 hours of labor are available each week at $15 per hour. Additional labor can be purchased at $25 per hour. Capital can be purchased in unlimited quantities at a cost of $45 per unit. If K units of capital and L units of labor are available during a week, then  machines can be produced. Each machine sells for $270. How can the firm maximize its weekly profit?

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The Answer of A total of 160 hours of labor are available each week at $15 per hour. Additional labor can be purchased at $25 per hour. Capital can be purchased in unlimited quantities at a cost of $45 per unit. If K units of capital and L units of labor are available during a week, then  machines can be produced. Each machine sells for $270. How can the firm maximize its weekly profit?

A Total of 160 Hours of Labor Are Available Each