How many workers should be hired


Problem

The owner of this hotel has the following short-run production function: Q = f(L, K) = 40L^1/2. He hired workers for 80$ per day.

He also identified the market demand function as: P = 240 - 0.5Q. Where, Q = the number of meals
served per day, and L = number of workers.

1. Formulate the labor demand equation of restaurant owner

2. How many workers should be hired?

3. Determine the numbers of meals served per day

4. Determine the price of average meal

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Microeconomics: How many workers should be hired
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