Suppose that a firm is producing in the short run with output given by: Q=66L-L² The firm hires labor at a wage of $47 per hour and sells the good in a competitive market at P = $22 per unit. Find the firm's optimal use of labor. Enter as a value. ROUND TO THE NEAREST WHOLE NUMBER.
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Q.8.
Subject :- Economic
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- A manager hires labour and rents capital equipment in a very competitive market. Currently the wage rate is $12 per hour and capital is rented at $8 per hour, whereas the marginal product of labour is 60 units of output per hour and the marginal product of capital is 45 units of output per hour. Show if the firm is using the cost-minimizing combination of labour and capital and give appropriate advice if necessary.Suppose that a firm is producing in the short run with output given by: Q = 73L - L2The firm hires labor at a wage of $27 per hour and sells the good in a competitive market at P = $23 per unit. Find the firm’s optimal use of labor.Enter as a value. ROUND TO THE NEAREST WHOLE NUMBER.Suppose that a firm is producing in the short run with output given by: Q = 67L - L2The firm hires labor at a wage of $20 per hour and sells the good in a competitive market at P = $25 per unit. Find the firm’s optimal use of labor.
- Suppose that labor is the only input used by a perfectly competitive firm. The firm’s production function is as follows: Number of Workers: 0, 1, 2, 3, 4, 5, 6, 7 Units of Output: 0, 7, 13, 19, 25, 28, 29, 29 a. Calculate the marginal product for each additional worker. b. Each unit of output sells for $10. Calculate the value of the marginal product of each worker. c. Compute the marginal profit if the wage is $100 a day. 2. Your enterprising uncle opens a sandwich shop that employs 7 people. The employees are paid $12 per hour, and a sandwich sells for $6. If your uncle is maximizing his profit, what is the value of the marginal product of the last worker he hired? What is that worker’s marginal product?A manager hires labor and rents capital equipment in a very competitive market. Currently the wage rate is $12 per hour and capital is rented at $8 per hour. If the marginal product of labor is 60 units of output per hour and the marginal product of capital is 45 units of output per hour, is the firm using the cost-minimizing combination of labor and capital? If not, should the firm increase or decrease the amount of capital used in its production process?1. The market price for tomatoes is $2/pound. Lynn is too small to influence the price of tomatoes. Her tomato (short-run) production function is given by q= L3 where L measures hours of labor and q measures pounds of tómatoes. (a) demand curve for labor. Lynn hires labor from a competitive labor market. Find her short run (b) elastic than her short-run demand for labor? Explain your answer. Would you expect Lynn's long-run demand for labor to be more or less
- Suppose that a firm is producing in the short run with output given by: Q = 68L-L2 The firm hires labor at a wage of $25 per hour and sells the good in a competitive market at P = $21 per unit. Find the firm's optimal use of labor. Enter as a value. ROUND TO THE NEAREST WHOLE NUMBER.A. Consider a firm who sells output at p=10 and has a short run production function Q(L)=20L-L2. Its wage rate is w=40. Suppose the firm sells in a perfectly competitive market and is a price taker in the input market, how much labor will it hire to maximize profits?Suppose a firm produces the following products. Calculate and fill in the missing values in the table below. (Round your answers to the nearest whole number.) Marginal product of Value of marginal Product Number of workers Price per unit labor product of labor A 10 170 $1,200 20 130 $12 25 130 $14 30 90 $1,200 In the above case, when the daily wage of the workers is $1400, then the firm will produce the products only after reducing the number of workers employed. The firm observes with the help of the that as additional labor is employed, the quantity produced for product A increases.
- The production function of a competitive firm is described by the equation y = 2x11/2 6x21/2. The factor prices are p1 = $3 and p2 = $4 and the firm can hire as much of either factor it wants at these prices. What is the firm’s marginal cost?Suppose that a firm is producing in the short run with output given by: Q=86L-L² The firm hires labor at a wage of $37 per hour and sells the good in a competitive market at P = $14 per unit. Find the firm's optimal use of labor. Enter as a value. ROUND TO THE NEAREST WHOLE NUMBER.Suppose that labor is the only input used by a perfectly competitive firm.The firm's production function is as follows:a.Calculate the marginal product for each additional worker.b.Each unit of output sells for $10.Calculate the marginal product for each additional worker.cCompute the demand for schedule showing the number of workers hired.