My textbook had the following question: A certain area has 7500 workers who are

Question

My textbook had the following question:

A certain area has 7500 workers who are willing to work at any salary. The area has two places of employment, A and B.

At A, the value of the marginal production of the workers is
w = 1800-0.1L

At B, it is
w = 1800-0.2L

where L is the number of workers and w is their salary per day.

Which company earns more money?

I understand that the wages at both companies will be the same, so we have

1800 - 0.1(L1) = 1800 - 0.2(L2)

I also understand that

L1 = 7500 - L2

and that we can - by substitution - come up with

L1 = 5,000
L2 = 2,500

My book says that we therefore conclude that company B earns twice as much as A.
I do not understand this. Just because B has half the workers that A has, doesn't mean B earns twice as much as A.

We all know firms that are small and firms that are large, and I never heard that a firm that employs half as many workers will earn twice as much.

Perhaps we can say this because both firms have the same 1800 figure in their formula, yet I still don't get it.

Please explain this. Thank you.

Explanation / Answer

A certain area has =7500 workers A,and b two places of employment A to A ,the marginal production of workers w =1800-0.1l A TO B the marginal production of workers w=1800-0.2l L= ,is the number of workers W =is the salary for day 1800-0.1(l1) =1800-0.2(l2 1799.9-1799.8 =0.1 L1 = 7500-l2 L1 and l2 workers same salary has taken and both companies also equal money earn. A and B companies also equal money earn. Because l1 = 5000 L2 =2500 A company workers has a = 5000 B company workers has a =2500 But labour salary paid eaual .A and B companies earn same money

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