Marginal Product of Labor to Maximize Profits of a Company.


Consider the Labor Economics Question. This will provide insight into the idea of the optimal number of workers and the value of the marginal product of labor.

If wages in the restaurant is $9.00 per hour and the price of a Hamburger is $4.00 and the production function for the workers is:

            Q = 5L – 0.25L2

a) How many workers should Your Restaurant employ during the lunch hour to maximize profits?

(note—the value of the marginal product of labor and the marginal revenue product are the same) We maximize profits which are total revenues less total costs:

b.) Compute the maximum profit at Your Restaurant.

(note—consider that profit involves Total Revenue and Total Costs)

c.) Compute the profit created if you hire an additional 0.5 worker. Explain why it is or is not profit maximizing to hire an additional 0.5 worker.

d) Suppose instead that you wants to keep the lines as short as possible by maximizing production. How many workers should you employ during the lunch hour?



The question belongs to micro economics and discusses about micro economic factors for a restaurant that can effect total revenue, total expenses, profit and production.


Total Word Count 170






Download Full Solution


  • HWA

    this is a very good website

  • HWA

    I have 50 questions for the same test your page is showing only 28

  • HWA

    hi can you please help or guide me to answer my assignments. thanks

  • HWA

    hi can anyone help or guide me to my assignments. thanks

  • HWA

  • HWA

    This solution is perfect ...thanks

  • HWA

    Hello Allison,I love the 2nd image that you did! I also, had never heard of SumoPaint, is something that I will have to exolpre a bit! I understand completely the 52 (or so) youtube videos that you probably watched. Sometimes they have what you want, sometimes they don't! However, it is always satisfying when you are able to produce something that you have taught yourself. Great job!Debra 0 likes

  • HWA

    Perfect bank of solution. 

  • HWA

    great !

  • HWA
    Paul Brandon-Fritzius

    thanks for the quick response. the solution looks good. :)

  • HWA
    tina Johnson

    thnx for the answer. it was perfect. just the way i wanted it. 

  • HWA

    works fine.