How many hours will scientist dedicate to the production

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Scientists at Los Alamos are price takers. They can sell patentable ideas for $1. Consider the production of patentable ideas. If the only input is labor (the scientists time), and the scientist could also be earning $10/hour in outside work

Q1) how many patents would he have to come up with in an hour to justify working on patentable ideas?

Q2)suppose the scientists explicit production function is given by y=f(L)=20*L^(1/2), and his marginal productivity, MP=20/(2*L^(1/2)). How many hours will he dedicate to the production of patentable ideas?

Q3)If the scientist decides to work as many hours was was decided was optimal in question 5, how much profit he make?

Reference no: EM13214388

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