Question 2. 1. Widget factory Inc. in Wisconsin has the following production function: F(L,K) = 2L/2 K/2 L represent the number of labour hours. Workers at this factory are paid an hourly wage of $30 and they rent capital at $25/hour. Since this is a competitive market, the factory output the factory gets per is output is $50 per unit. Let's pretend the firm operates in the short run with capital fixed at 900, how many factory workers would Widget Factory Inc employ? What is their profit rate?
Question 2. 1. Widget factory Inc. in Wisconsin has the following production function: F(L,K) = 2L/2 K/2 L represent the number of labour hours. Workers at this factory are paid an hourly wage of $30 and they rent capital at $25/hour. Since this is a competitive market, the factory output the factory gets per is output is $50 per unit. Let's pretend the firm operates in the short run with capital fixed at 900, how many factory workers would Widget Factory Inc employ? What is their profit rate?
Chapter6: Proudction Costs
Section: Chapter Questions
Problem 2SQP
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Question 2.
1. Widget factory Inc. in Wisconsin has the following production function:
F(L,K) = 2L/2 K/2
L represent the number of labour hours. Workers at this factory are paid an hourly wage of $30 and
they rent capital at $25/hour. Since this is a competitive market, the factory output the factory gets
per is output is $50 per unit.
Let's pretend the firm operates in the short run with capital fixed at 900, how many factory workers
would Widget Factory Inc employ? What is their profit rate?
Question 3.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F17fa4715-d8cc-43af-a0db-89193b1e8fc7%2Fe48b539e-09f0-41df-8bf2-cffeb6a4aa12%2Fxb15yl9_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Picture Tools
16285711986112063eel9ba0 69816244 (Read Only
Sman
References
Mailings
Review
View
Format
Picture Shape Y
Bring to Fre
Picture Border
Send to Bac
Position
Picture Effects
Text Wrappr
Picture Styles
Arrange
2.
6
Question 2.
1. Widget factory Inc. in Wisconsin has the following production function:
F(L,K) = 2L/2 K/2
L represent the number of labour hours. Workers at this factory are paid an hourly wage of $30 and
they rent capital at $25/hour. Since this is a competitive market, the factory output the factory gets
per is output is $50 per unit.
Let's pretend the firm operates in the short run with capital fixed at 900, how many factory workers
would Widget Factory Inc employ? What is their profit rate?
Question 3.
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