If q=2(square root of L) and the price at which the good sells is 10 the demand curve for labor as a function of the wage rate w is given by the formula L=..........
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A: the demand for labor as a function of the wage rate(w) is given by the formula L= 10/w
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If q=2(square root of L) and the price at which the good sells is 10 the demand curve for labor as a function of the wage rate w is given by the formula L=..........
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- If q=lnL and the good being produced can be sold for $10 a unit then the demand for labor as a function of the wage rate(w) is given by the formula L=.......Suppose a firm produces according to the production function Q = 2L0.6K0.2, and faces wage rate ₵10, a rental cost of capital ₵5, and sells output at a price of ₵20. a. Obtain and expression for the factor demand functions. b. Compute the profit-maximizing factor demands for capital and labourSuppose the hourly wage rate is $14, the rental price of capital is $2 and the price of output is constant at $42 per unit. Firm's production technology is q = 4K0.25 0.75, the marginal product of employment is MPE =3K0.25E-0.25 and the marginal product of capital is MPK = K™ 0.75 0.75. What is firm's optimal demand of labor if firm plans to produce q=19 units of outputs in the long-run? (please keep 1 decimal place in your answer)
- Consider the labour markets for skilled labour and unskilled labour. The labour demand curve for skilled workers is given by w = e(150 - 5L)/100. The labour demand curve for unskilled workers is w = 50 - 2L. The labour supply for each of the two labour markets is given by L = 20. The effort of firm's skilled workers depends on their wage according to the following schedule: wage (w) 20 25 30 35 40 45 Effort (e) 16 24 30 34 36 36 a) Calculate the equilibrium employment, unemployment, and wage for unskilled workers. b) Calculate the profit-maximizing contract (w,e). c) Calculate the equilibrium employment, unemployment, and wage for skilled workers. d) In a single labeled graph in (w - L), illustrate the labour market equilibria for skilled and unskilled workers. e) Calculate the cumulative income distribution for each labour market by reporting the cumulative shares for the following percentiles: 50% and 100%. f) In a single graph, construct the Lorenz curve representing labour…Consider a competitive firm in both input and output markets. The production function for this firm is given by q = 10 (KL)^.2. The price of K is $1 and the price of the output is $5. Derive the demand for labor when K is variable.Consider a production function: Q = f (L), where Q represents the output and L is thefactor of production. Let w be the per unit price of factor L and p be the per unit price ofoutput Q. Using the Envelope theorem determine the supply function and the factor demand function.
- Jumbo Enterprises is the sole producer of jumbo jets in the economy. Demand for jets is given by y=2122-201p, where y is the number of jets and p is the price of a jet. The number of jets that Jumbo produces is a function of the number of engineers (N) that it hires. This function is given by y=0.8N. Engineers are hired in a competitive labor market, where the wage is equal to $6. Find Jumbo Enterprise's profit-maximizing choice of N. Answer:Suppose the hourly wage rate is $17, the rental price of capital is $2 and the price of output is constant at $45 per unit. Firm's production technology is q = 4K0.25E0.75, the marginal product of employment is MPE =3K0.25E-0.25 and the marginal product of capital is MPK = K-0.75E0.75. What is firm's optimal demand of labor if firm plans to produce q=26 units of outputs in the long-run? (please keep 1 decimal place in your answer)Calculate the Marginal Product (MP) at each input level. If the price of printer is $100 each, calculate the Value of the Marginal of labor (VMPL). If the wage rate (per week) is $1800 , how many workers will be employed? If the firm decides to hire 14 workers, what is the maximum wage the firm would be willing to pay?
- Suppose the supply curve of lab assistants is given by w = 8 + 6E, while the demand curve is given by w = 40 – 2E. (Assume is in 000s of persons and w is the annual salary in thousands of dollars). Calculate the equilibrium wage and employment level.Suppose the labor supply curve for native Washington DC residents is S DC (w) = 2w. There are many small firms in Washington DC. They collectively have a production function f (E) = 6E − E . 42 1. Write down the value of the marginal product of labor for the firms. 2. Find the equilibrium employment and the wage. 3. A group of workers moves from New York to Washington DC. These workers are perfect substitutes for Washington DC residents, and their labor supply curve is S NY (w) = 2 + αw where 0 < α < 1. Find the new total labor supply curve in Washington DC. 4. Find the new wage and Washington DC native employment. migrants? How do these depend on New YorkSuppose that f(L, K, M)=LKM and the costs of these three inputs are $4, $2, and $1 respectively (i.e., the cost of L is $4, cost of K is $2, and the cost of M is $1). Find the quantity constant factor demand for labor
