Final answer:
The question is about finding the optimal units of labor needed to achieve a certain output level within an economic setting, guided by the principles of supply and demand, price levels, and profit maximization.
Step-by-step explanation:
The question deals with the concepts of quantity demanded (QD), price level (P), and labor input (L) within an economic framework, focusing on supply and demand, and optimal production levels.
Calculating Quantity Demanded
From the initial equation QD = 12000 - 100P, to find the quantity demanded, we adjust the equation based on a given price level.
Understanding the Price Level
Pl denotes the price level, which influences the quantity supplied and demanded.
Optimal Units of Labor and Output
The optimal units of labor (L) required to produce a target output can be calculated using the product of marginal product of labor (MPL) and the marginal revenue (MR) at a given quantity (q).
From the references provided, MR and MC intersect at a quantity of 40, which means that is the profit-maximizing level of output for a firm, and if the price is $2, producers will supply 12 personal pizzas, which indicates that quantity demanded equals quantity supplied at that price.