LABOR ECONOMICS LOOSELEAF 8/E
8th Edition
ISBN: 9781264010516
Author: BORJAS
Publisher: MCG
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Question
Chapter 3, Problem 10P
To determine
Identify the number of labors firm employed in the short run and the profit that will be earned by the firm.
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Suppose the hourly wage is $20 and the price of each unit of capital is $2. The price of output is constant at $20/unit. The production function and marginal product function, respectively, are shown below.
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A widget manufacturer has a production function of the form q = 6L + 10K . If the wage rate (w) is $4 and the rental rate on capital (r) is $5.
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What cost minimization combination of K and L will the manufacturer employs to produce 300 units of output?
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Where X is the number of units of the product per week, and L is the number of persons employed.
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if the price of the product is $0.20 per unit, what is the maximum weekly wage that the firm would pay rather than close down?
Chapter 3 Solutions
LABOR ECONOMICS LOOSELEAF 8/E
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- For a linear production function what is the short-un production function given that capital is fixed at R2507 The short run production function (as a function of L) i What is the marginal product of labor? The marginal product of labor (MP) a) 104K Mr your response as a whole number)arrow_forwardSuppose that the production function of the firm is:Q = 100L1/2 . K1/2K= 100, P = $1, w = $50 and r = $40. Determine the quantity of labor that the firm should hire in order to maximize the profits. What is the maximum profit of this firm?arrow_forwardThe marginal product of labor can be determined using the total product of labor curve. Using the equation for the production function, the level of output when L = 8 and K = 25 is (3) 2³. (Enter a numeric response using a real number rounded to two decimal places). q=8LK+5L² Product or Output (q) 3,500- 3,000- 2,500- 2,000- 1,500- 1,000- 500- 0- Production Function 5 2 :8 15 15 10 Labor Input (L) 20 25arrow_forward
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