Use the Following Profit Function (Per Worker)for the Blue Delta

question 15

Multiple Choice

Use the following profit function (per worker) for the Blue Delta Faucet Company to answer this question. P(e) = 40e - (2e² + 100)
Note that P = firm profits and e = worker-hours per day.Assume that effort is observed perfectly.At the profit-maximizing level of effort for the firm,daily per-worker compensation will be:

• A) $100.
• B) $200.
• C) $300.
• D) $340.
• E) none of the above.

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