Labour Demand with Perfect Competition in the Labour Market and Perfect Competition in the Output Market in the Long Run. You are the manager of a business that operates in perfectly competitive markets {both the Labour Market and Output Market}. The production function of the business is given by: Q = 2LK4. The price of the product is "100". The wage rate is "2". The price of capital is "4". a) Find the use of labour and capital in the long run. b) Explain the difference between the Short Run and Long Run. c) Include a diagram for your solution.

Labour Demand with Perfect Competition in the Labour Market and Perfect Competition in the Output Market in the Long Run. You are the manager of a business that operates in perfectly competitive markets {both the Labour Market and Output Market}. The production function of the business is given by: Q = 2LK4. The price of the product is "100". The wage rate is "2". The price of capital is "4". a) Find the use of labour and capital in the long run. b) Explain the difference between the Short Run and Long Run. c) Include a diagram for your solution.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter11: The Firm: Production And Costs

Section: Chapter Questions

Problem 15P

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