Mon 20 Aug, 2018 05:43 am
I have difficulties solving this problem, would be nice if anyone could help me on this one. Thanks.
The Ajax Coal Company is the only hirer of labor in its area. It can hire any number of female workers or male workers it wishes. The Supply curve for woman is given by
lf = 100wf and for men by lm = 9w2m
where wf and wm are the hourly wages paid to female and male respectively. Assume that ajax sells its coal in a perfect competitive market for 5 €/ton and that each worker hired (both men and womem) can mine 2 tins for hour. If the firms wishes to maximize profits, how many women and men workers schould be hires and what will be the wage rates be for these two groups?