A firm's short run revenue function is given by R = 8e – ¾ e^2 , and its profit function is given by N = R – w, where "e" is the level of effort provided by a worker and "w" is the wage rate of the worker. Suppose that the worker's problem is to choose the level of e to maximize his benefit function B = 2w – 1.5e.
Q: Suppose a firm produces according to the production function Q = 2L0.6K0.2, and faces wage rate…
A: *Answer:
Q: Consider a fishery with the following production function where L is the number of fishermen and TP…
A: A profit-maximizing firm will produce the output up to a level where the marginal revenue is equal…
Q: Consider a firm which produces q units of output using L units of labour and whose market demand for…
A: As per the question, L*=57-w14p if w14p<57 and L*=0, otherwise p=57 Assume q denote…
Q: Suppose a firm produces according to the production function Q=3K/3L/3 and faces a wage rate of $5…
A: The Production function Q = 3K1/3L1/3 Wage rate(w) = $5 Rental rate of capital(r) = $2 Output price…
Q: The production function of a given item is Q = 10(L^½)(K^½) and the factor prices are equal to $20…
A:
Q: If a firm's production function is Leontief and the wage rate goes up, the: Multiple Cholce firm…
A: Leontief production function use a fixed proportion of labor and capital. We can say that technology…
Q: Widget factory Inc. in Wisconsin has the following production function: F(L,K) = 2L1/2 K1/2 L…
A: Given information: F(L,K) = Q = 2L1/2K1/2 Where Q is output L is labor K is capital…
Q: Suppose that a firm's production is given by: Q= 10L-L² , for L= 0 to 5, where L is labor input per…
A: In a perfectly (PC) competitive labor market, the workers are hired according to their productivity.…
Q: In a particular country, there are two types of individuals: native (n) and foreigners (f). Each…
A: Un = x0.4y0.6 Uf = x0.2y0.8 x = 4l y = 5l
Q: If the short run production function is given by q=(1/10)lnL and the price at which the good is…
A: The production function is given as q=(1/10)lnL
Q: For questions 11-14: Suppose a firm's production function is given byes q = 8/Ew + Ep, where Ew and…
A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…
Q: The relationship between a worker’s daily wage, w, and her daily output, q, is q = 0.1 w2 - 0.0005…
A: Wages are the price that is paid to the economic input, that is labor, for use of its services.…
Q: Consider the production function Q = 6K//3L/2, where Q, K, and L denote the quantities of output,…
A: Profit = TR – TC TR = P*Q TC= wL + r K w = 12, r = 0.16, so, TC= 12L + 0.16 K The profit function as…
Q: Consider a firm with 1 input and 1 output and a production function given by f(x) = x1α with α < 1.…
A: Profit maximization appears to be a realistic premise about how businesses behave. The firm…
Q: For questions 11- 14: Suppose a firm's production function is given by q = 8/Ew + Ep,4 where Ey and…
A: GIVEN Suppose a firm's production function is given by q=8 sqrt E w +E b , where E infty and E_{b}…
Q: Assume in a given company the marginal productivity can be characterized by the following function…
A: At the marketplace, a firm tries to maximize its profit, due to which it makes constraints for…
Q: Let L represent the number of workers hired by a firm, and let Q represent that firm's quantity of…
A: Marginal Product: Marginal product is an extra output produced by employing an extra unit of the…
Q: Anna and Bob are the only residents of a small town. The town currently funds its fire department…
A: * SOLUTION :- According to guidelines I answered only 1st question.. remaining post seperately…
Q: at p=10 and has a short run production function Q(L)=20L-L2. Its wage rate function is w=40+2.5L.…
A: *Answer:
Q: A competitive, profit-maximizing firm uses two inputs labor (2) and capital (K). Its production…
A:
Q: A firm uses a production function of the form Y=z*K^0.33*Nd^0.67 and chooses labor input Nd to…
A: Given: The production function of the firm is: Y = z*K^ 0.33*Nd^ 0.67 z = 10 K = 100 Wage w = $20…
Q: Jumbo Enterprises is the sole producer of jumbo jets in the economy. Demand for jets is given by…
A: We have demand and production function and labor price w =$6
Q: QUESTION 2 Consider a self-employed worker. The worker produces output, q, according to the…
A: This worker should optimally work for 2.5 h and will earn a profit of $ 18.75 as cost will be $6.25…
Q: Q) The market demand for the output is P = 80-Q, where Q is the output level and P is the price per…
A: A labor market is where workers and employees cooperate with one another.
Q: A firm's output is given by q = 4L? where L is labour. If the price of output is £2 and the wage…
A: At competitive equilibrium, the firm maximizes profit by hiring number of workers at a point where…
Q: Suppose a price taking firm’s production function is given by q= √L, where is labor. When the wage…
A: Given Production function q=L ... (1) Wage rate =1.5
Q: There are 10,000 identical individuals in the market for commodity X, each with a demand function…
A: Individual's demand equation = Qds = 12 - 2Px Individual's supply function = Qsx = 20Px
Q: In each of the following four cases, MRPL and MRPC refer to the marginal revenue products of labor…
A: 1. MRPL=$8, PL=$4, MRPC=$8, PC=$4 These conditions are not consistent with the maximum profits for…
Q: The production function for a price-taking firm is given by q = 2.5k0.4L0.4. What are the demand…
A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: The total number of output obtained per hour (q) is given by q =KT where L is labor input per hour…
A: The average productivity of labor is qL calculating it using the production function and formula:…
Q: Each employer faces competitive weekly wages of $2,000 for whites and $1,400 for blacks. Suppose…
A: Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for you. If…
Q: Q1. Set up the representative agent's utility maximization problem and write down the first order…
A: A rational consumer always desires to maximize his utility subject to his income constraint. Let us…
Q: f q = 4 lnL and the good is sold for $10 then if the wage rate is $5 the number of units of labor…
A:
Q: Using a Cobb Douglas production function as follows: Q = 4L1/4K 1/4 where p=price of good; w=wage…
A: Given production function :- Q = 4L1/4 K1/4
Q: "If the wage rate paid to one form of labor is twice the cost of another form of labor, the first…
A: In a market, the productivity of labor can be computed using the cost and benefits analysis as the…
Q: Why does a profit-maximizing firm hire workers up to the point where the wage equals the value of…
A: Wages is the payment which an employer pays to its worker for its labor or service. The wage is the…
Q: Consider a firm with the production function q = L}K* The firm faces a wage rate of w = 20 and a…
A: The given production function is a ‘Cobb-Douglas’ function where the producer uses both labor(L) and…
Q: All individuals have the same utility function over consumption, C, and leisure, L, given by U =…
A: Given information U = C1/3L2/3 Wage rate=W Total time=12 Pc=1
Q: If q=2(square root of L) and the price at which the good sells is 10 the demand curve for labor as a…
A: Answer Explained:
Q: Given the production function: Where CES stands for Constant Elasticity of Substitution. K is…
A: We are going to find the Profit function and First order conditions to answer the question.
Q: A firm produces at an output level where the marginal product of labor (MPL) is 50 units and the…
A: A firm either maximizes profit or minimizes cost and hence it follows that any firm should follow…
Q: Suppose Die Cast Aluminum Co. is a subcontractor for the auto industry and makes specialized auto…
A: Hello. Since your question has multiple sub-parts, we will solve the first three sub-parts for you.…
Q: Consider a self employed worker who owns a firm that produces output q which sells for a price of p…
A: Answer-
Q: (b) Consider a production function: Q=7(L), where Q represents the output and L is the factor of…
A: Envelope theorem is related to the differentiability of certain variables and its impact on the…
Q: Hannah and Sam run Moretown Makeovers, a home remodeling business. The number of square feet they…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Hello, I would like to request help with the below discussion question for my Quantative Analysis…
A: We are going to execute profit maximisation method to answer this question.
Q: firm produces at an output level where the marginal product of labor (MPL) is 50 units and the…
A: Output is maximized where the MPL/PL =MPk/Pk
Step by step
Solved in 5 steps
- Suppose that labor is the only input used by aperfectly competitive firm. The firm’s productionfunction is as follows:Days of Labor Units of Output0 days 0 units1 72 133 194 255 286 297 29a. Calculate the marginal product of each additionalworker.b. Each unit of output sells for $10. Calculate thevalue of the marginal product of each worker.c. Compute the demand schedule showing thenumber of workers hired for all wages from zeroto $100 a day.d. Graph the firm’s labor-demand curve.e. What happens to this demand curve if the price ofoutput rises from $10 to $12 per unit?Suppose we have a produ ction function for wheat Q = KL - 0.8K2 - 0.212 A. Given K = 10 Units, calculate the level of labourth at the AP reaches max andh ow Much wheatis produced at that point B. Given K = 10 at what level of labour outputreaches maximum C. How mu ch Ilevel of labor should the company hire in order to be efficient |The marginal product of effort, a typical worker in fast-food burger joint, is one- fourth burgers per hour; that is, MPe = .25The price of a burger is $2. The figure graphs Mac’s marginal cost of effort. If Mac increases his effort by one unit per hour, the change in the burger joint’s revenue is $ per hour. That is, what is VMPe , the value of Mac ‘s marginal product of effort ? Plot the VMPe curve in the figure. Mac efficient effort e^ is the solution to what equation? Illustrate the solution in the figure. Mac efficient…
- 2. A production function is given by the equation Q = 100L04K0.6 Where L is the number of labour units and K the capital units. a. Find marginal product of labour (Q₁) at L=4 and K=10. Interpret the result. aQ L at L=4 and K-10. ƏL Q b. Find the partial elasticity with respect to labour (EQL = Interpret the result. C. When Q-200, the marginal rate of technical substitution at L=4 is -0.21. Interpret that value (MRTS).7 Output for a simple production process is given by Q- KL, where K denotes capital and i denotes labor. The price of inbor is $10 per unit and the price of capital is $2 per unit. If at the current level of production the marginal product of labor is 8 while the marginai product of capital is 2, then in order to minimize your costs of production you should use Multipie Choice more capital and less labor the same ahount of both inputs more labor and less capital more of both inputs.A firm faces a perfectly elastic demand for its output at a price of $6 per unit of output. The firm, however, faces an upward-sloped labor supply curve ofE = 20w - 120where E is the number of workers hired each hour and w is the hourly wage rate. Thus, the firm faces an upward-sloped marginal cost of labor curve ofMCE = 6 + 0.1EEach hour of labor produces five units of output. How many workers should the firm hire each hour to maximize profits? What wage will the firm pay? What are the firm’s hourly profits?
- You pay for school tuition, and for each class you attend. Suppose that you stopped attending class after the first semester, but still pay school tuition. Which of the following is this an example of? Sunk cost Equimarginal principle O Positive net gain O Marginal product of labor QUESTION 4 Evaluate the following statement: "A firm producing at the point where marginal benefit is not equal to the derivative of total cost is adhering to the equimarginal principle" False True5. Cost Minimization Suppose a firm has the technology of F(K.L) 40LK Draw a graph of the firm's not at 8000 units of output (does not have to be exact). Put laboren the s-axis and capital on the y AXI What is the formals for the firm's MRTS at any level of Land K Suppose the price of labor is 5 while the price of capital is 10, and the fiem wants to produce 8000 units of output. What is the cost minimiring combination of labor and capital?Consider a Sraffa system that describes production with a surplus. Assume that the whole of the wage is variable. The number of commodities in the system is ?. Some are non-basic commodities. . State the economic meaning of the viability condition and express it mathematically. . Assume that the viability condition is satisfied and the rate of profit is given exogenously at a level that is lower than the maximum rate of profit. Explain, with the help of the relevant theorem, why the solution for prices must be nonnegative. NOTE: You need to use only three equations, one for specifying the numeraire, the second for expressing the final solution of the price equations, and third for expressing the condition for nonnegative prices.
- Take a Cobb-Douglas production function, find its Elasticities w.r.t output and Elasticity of Substitution with the help of partial derivatives.A firm can manufacture a product according to the production function Q = 2(K)1/4 (L)3/4 where K represents capital equipment and L is labor. The company has already spent $10,000 on the 4 units capital. a. Please show the expression for the average product of labor, APL and the marginal product of labor, MPL. If workers at the firm are paid a competitive wage of $100 and the product is sold for $200 each, what is optimal level of labor usage and what is the maximum profit?Suppose Die Cast Aluminum Co. is a subcontractor for the auto industry and makes specialized auto parts. There is a bracket it manufactures that it sells for $1.00. The following table shows the number of brackets that can be produced from a given number of labor hours. Assume that the company cannot hire labor for a fraction of an hour. Hours of Labor Output 0 0 1 50 2 90 3 120 4 140 5 150 6 155 7 157 The marginal product of labor for the third hour of labor is ...????. (Enter your response as an integer.) The value of the marginal product of labor for the third hour of labor is ......???. (Round your response to two decimal places.) If the wage paid to workers in Die Cast's plant is $25/hour, it should employ ......??? worker(s). (Enter your response as an integer.) If the wage paid to workers in Die Cast's plant is $35/hour, it should employ ......???? worker(s). (Enter your response as an integer.) If…
