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

question 22

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.What is the profit-maximizing level of effort for the firm to set for workers?

• A) There is no effort level that maximizes profits in this case.
• B) 3.16 hours per day.
• C) 8 hours per day.
• D) 10 hours per day.
• E) 12 hours per day.

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Definitions:

World's Population

The total number of people living on Earth at any given time.

Percent

A means of expressing a number as a fraction of 100.

Richest 1 Percent

The segment of the population that holds a disproportionally large share of a country's wealth, often used in discussions on inequality.

World Population

The total number of humans currently living on Earth, often estimated and analyzed for trends in growth, distribution, and demographic changes.