= A firm has a short run production function Q AK0.5L0.5, where A is technology, K is capital set at level of 4, and L is Labor. The price of labor is w, and the price of capital is r. The price of output is p. Please derive firm's demand for labor, and express it as a function of wage. a. Ob.(AK0.5 C. PAK 0.52 2 d. 2w PAKO.S W PAKO.5 2w

= A firm has a short run production function Q AK0.5L0.5, where A is technology, K is capital set at level of 4, and L is Labor. The price of labor is w, and the price of capital is r. The price of output is p. Please derive firm's demand for labor, and express it as a function of wage. a. Ob.(AK0.5 C. PAK 0.52 2 d. 2w PAKO.S W PAKO.5 2w

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter7: Production Economics

Section: Chapter Questions

Problem 6E

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The firm aims at maximizing its profits in the short run. The wage level is w=140. The production function is as below. At which number of workers is the marginal product of labour is at its maximum? Variable Input (Labour) Price of output Output L P Q 0 5 0 1 5 58 2 5 112 3 5 162 4 5 208 5 5 250 6 5 288 7 5 322 8 5 352 9 5 378 10 5 400 11 5 418 a. 1 b. 2 c. 3 d. 4
Please no written by hand solutions Belfast Company produces bucycles using labor (L) and capital (K). Its production function is given by the following expression: Q =min{ 125 L , 143 K} where Q is the output of bicycles. The prices of labor (PL), capital (PK), bicycle (P) and the cost (C) are the following: PL=1, PK=5, P=12 and C=2183 What is the profit maximizing amount of labor that Belfast Company should hire?
A firm uses capital and labour to produce widgets. In the short-run capital is fixed, while labour is variable. The short-run production function is X=-L3 + 24L2 + 240L Where X is the number of widgets produced in per week, and Lis the number of workers employed. Each worker works a 40-hour week. The wage rate is $12 per hour. Calculate the range of values for Lover which the firm is in stage I, stage II and stage III what is the minimum product price at which the firm will operate in the short-run? The product price, over which the firm has no control, is such that the firm's maximum possible pure profit $ 1096 per week. In order to achieve that level of profit it must employ 16 workers. How much is the firm's total fixed cost?
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The firm aims at maximizing its profits in the short run. The wage level is w=140. The production function is as below. Variable Input (Labour) Price of output Output L P Q 0 5 0 1 5 58 2 5 112 3 5 162 4 5 208 5 5 250 6 5 288 7 5 322 8 5 352 9 5 378 10 5 400 11 5 418 At which number of workers is the marginal product of labour is at its maximum? a. 1 b. 2 c. 3 d. 4 What is the optimum number of workers? a. 3 b. 4 c. 5 d. 6 e. All the other answers are wrong.
True or false and explain Suppose a firm’s marginal product of labour is MPL = 10/L, where L is measured in labour hours, the price of the product is $600, and the cost per hour of labour is $30. The firm currently employs 150 labour hours. In order to maximize the firm’s profits in the short run, the manager should increase its labour employment by 40 labour hours.
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