A firm faces the following inverse demand curve
P= 54-0.5Q
Where P is the price of output and Q is the number of outputs sold per hour. This firm is the only employer in town and faces an hourly supply of labor given by:
W=0.5E +10
Where w is the hourly wage rate and E is the number of workers hired each hour. Each worker produces 5 outputs per hour. How many workers should the firm hour to maximize its profit? What wage will it pay? How much will it charge for each output? What is the profit level of the firm?