Find the profit-maximizing number of workers for the firm

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The Robbins Corporation has the following production function for producing diving masks: q = K + 2 (L)(1/2) Its input prices are pK = $6 and pL = $4. It can sell as many masks as it likes for $20 each, which means that the marginal revenue or MR for each mask = $20. a.Fill out the following table for the Robbins Corporation in the short run for K=8. MPL refers to the marginal product of labor; MRPL refers to the marginal revenue product of labor. Show work for at least some of your calculations. b. Using the rule MRPL = pL, find the profit-maximizing number of workers for the firm to hire from among the options given in the spreadsheet. Explain. c. What are total profits for the Robbins Corporation at the profit-maximizing number of workers found in part c? Show work. L q MPL MRPL 0 --- --- 4 9 16 25 36

Reference no: EM131092742

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