🍦 Ice Cream Hiring Decision

You are the owner of an ice cream factory. You own the machines and want to know how many scoopers to hire.

Y = A × Kα × L(1-α),   π(L) = Y - wL - rK

Fixed Parameters

Scale Productivity (A)100
Fixed Capital (K)60
Capital Share (α)0.33
Wage (w)55
Capital Price (r)0

Student Controls

Optimality Condition

FOCMPL = w
Current MPL(L)0.0
Gap: MPL - w0.0
Left: total profits as a function of labor, with a dot at current L. Right: MPL curve and the wage line, with a dot at the current L.
Current L0.0
Y(L)0
π(L)0
MPL(L)0.00
Move L to compare MPL and w