Currently, One Guy's uses 4 ovens in the production of pizzas (K represents the number of ovens). One Guy's marginal product of labor function is MP_L (L, K) =
. One Guy's can sell all the pizzas it produces for $12 per unit and hire all the labor units it desires at $8 per unit. What happens to One Guy's optimal labor employment if it increases the number of ovens to 5?

Question

Currently, One Guy's uses 4 ovens in the production of pizzas (K represents the number of ovens). One Guy's marginal product of labor function is MP_L (L, K) =

Currently, One Guy's uses 4 ovens in the production of pizzas (K represents the number of ovens). One Guy's marginal product of labor function is MP<sub>L</sub> (L, K) = . One Guy's can sell all the pizzas it produces for $12 per unit and hire all the labor units it desires at $8 per unit. What happens to One Guy's optimal labor employment if it increases the number of ovens to 5?

. One Guy's can sell all the pizzas it produces for $12 per unit and hire all the labor units it desires at $8 per unit. What happens to One Guy's optimal labor employment if it increases the number of ovens to 5?

Quizplus · Accepted Answer

The Answer of Currently, One Guy's uses 4 ovens in the production of pizzas (K represents the number of ovens). One Guy's marginal product of labor function is MP_L (L, K) = . One Guy's can sell all the pizzas it produces for $12 per unit and hire all the labor units it desires at $8 per unit. What happens to One Guy's optimal labor employment if it increases the number of ovens to 5?

Currently, One Guy's Uses 4 Ovens in the Production of Pizzas