Number of labor hours used and consequent level of profit

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Your specialty is delicious cheeseburger that you sell for $6.50 a piece. The cost of ingredients for each cheeseburger, such as meat, buns, tomato etc., is $1.50. You hire workers at $12 an hour. The production function for cheeseburgers is Q=40\sqrt{L} , where L is the number of labor hours employed and Q the number of cheeseburgers produced. There is a fixed cost of $168. (a) There is no way to produce delicious cheeseburgers without also producing lots of grease, which needs to be hauled away. In fact every cheeseburger that you produce, you also produce 1 ounce of grease. You hire a service that hauls away grease at the cost of $3.20 per pound. Calculate the profit maximizing number of hamburgers, the amount of grease produced, the number of labor hours used and the consequent level of profit.

Reference no: EM13743952

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Number of labor hours used and consequent level of profit : Your specialty is delicious cheeseburger that you sell for $6.50 a piece. The cost of ingredients for each cheeseburger, such as meat, buns, tomato etc., is $1.50. You hire workers at $12 an hour. The production function for cheeseburgers is Q=40\sqr..

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