The production function
Tall Paul Stewart Brewery produces beer The most popular
style is Tall Paul Stewart Stout The MBA’s in marketing estimate TPS Stoutâ??s
production function to be Q = 400L2B, where Q is the number of bottles of TPS
Stout produced each week, L is the weekly labor hours, and B is weekly total
hours running the bottling line Each bottling line can operate 120 hours in a
week The cost of labor is $15/hour, and each bottling line costs $1200 per
week
Suppose TPS has 20 lines and is producing at an optimal B/L
ratio How many people does TPS employ to make Stout? Assume each person works
40 hours a week
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