In the McFadden Company, the relationship among output (Q) and the number of hours of skilled labor (S) and unskilled labor (U) is
Q = 300S +200U – 0.2S 2 -0.3U 2
Marginal Product of Skilled labor = 300 – 0.4S
Marginal Product of Unskilled labor = 200 – 0.6U
The hourly wage of skilled labor is $10 and the hourly wage of unskilled labor is $5. The firm can hire as much labor as it wants at these wage rates.