You are a store manager in MC Donalds. During busy lunch hour, the amount of hamburgers (Q) that can be made is determined by the number of workers (L). Suppose each worker makes $6 per hour and hamburgers sell for $4. The production function can be estimated as:
Q = 4L – 0.25L2
a. How many workers should you employ during the
lunch hour to maximize profits?
b. Compute the maximum profit.
c. Suppose instead that you want to minimize the
waiting time of customers by maximizing production. How many
workers should you employ during the lunch hour?
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