0 A firm's output is given by q = 4L2 where L is labour. If the price of output is £2 and the wage rate is £4, then the amount of Labour employed will by a firm will be: a. 0.25 b. 0.5 C. 2 d. 1
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- For a production process, the marginal product of labour is given by the equation: MPL= 12L - 0.4L2. The first 18 items produced can be sold for $100 each, and beyond that production level, the unit selling price is $90. What is the marginal revenue product of labour when labour input is 20? a.6800 b.8000 c.9000 d.7500 e.7200A Company is the only employer. Its only variable input is labor, having a marginal product equal to 20-L. It faces a supply curve for labor of W = 4 + 4L, where W is the wage rate and L is the number of person-hours employed. The marginal factor cost curve MFC = 15 + 2L. Suppose the firm can sell all it at a constant price of 10. %3D How much labor (L) does will this company employ? What is the wage this company will offer its employees?If MPL=.5 and the wage rate is 20 when 5 units of output re being produced, what is the marginal cost?
- 12. A firm uses capital and labour to produce widgets. In the short-run capital is fixed, while labour is variable. The short-run production function is X-L'+ 24L2+ 240L Where X is the number of widgets produced in per week, and L is the number of workers employed. Each worker works a 40-hour week. The wage rate is $12 per hour. a. Calculate the range of values for L over which the firm is in stage I, stage II and stage II b. what is the minimum product price at which the firm will operate in the short-run? c. The product price, over which the firm has no control, is such that the firm's maximum possible pure profit $ 1096 per week. In order to achieve that level of profit it must employ 16 workers. How much is the firm's total fixed cost?.The below table shows the output associated with each quantity of labor, assuming the level of capital is fixed. Assume the price of a unit of output is $2 and the wage is equal to $11. How many workers would the firm hire? Show your work. Number of Workers Output per hour 0 0 1 8 2 14 3 18 4 20Consider a fishery with the following production function where L is the number of fishermen and TP (total product) is the total number of fish caught among all fishermen. L 1, 2, 3 , 4, 5, 6 , 7, 8, 9, 10 TP 18, 34, 48, 60, 70, 78, 84, 88, 90, 90 The price of fish is $2 and the wage of a fisherman is $24. A. If the fishery is private property, how many fishermen will the owner hire? B. If the fishery is common property, how many people will come to fish? (Assume people fish as a job and not for recreation) c. What is the efficient number of fishermen?
- QUESTION 2The total production of a good y is determined by the production function y = 3L2/3K1/3, where L is labour input and K capital input.The reward (factor prices) for labour and capital are, l = 27 en r = 2, respectively.The producer needs to produce 9000 units of good y.How much units of labour will he hire if he wants to miminize his total costs? 1587,4839,953000515,23The firm aims at maximizing its profits in the short run. The wage level is w=140. The production function is as below. Variable Input (Labour) Price of output Output L P Q 0 5 0 1 5 58 2 5 112 3 5 162 4 5 208 5 5 250 6 5 288 7 5 322 8 5 352 9 5 378 10 5 400 11 5 418 At which number of workers is the marginal product of labour is at its maximum? a. 1 b. 2 c. 3 d. 4 What is the optimum number of workers? a. 3 b. 4 c. 5 d. 6 e. All the other answers are wrong.The firm aims at maximizing its profits in the short run. The wage level is w=140. The production function is as below. Variable Input (Labour) Price of output Output L P Q 0 5 0 1 5 58 2 5 112 3 5 162 4 5 208 5 5 250 6 5 288 7 5 322 8 5 352 9 5 378 10 5 400 11 5 418 What is the optimum number of workers? a. 3 b. 4 c. 5 d. 6 e. All the other answers are wrong.
- (a) Why does the labour demand curve slope downwards? (b) A garment factory’s production function is provided in the table.The gross profit per unit (difference between selling price and material cost, but not including the cost of labour) is $100. # Workers Output 1 20 2 36 3 48 4 56 5 60 6 62 (i) If the wage rate is $1,000 a week, how many workers should the factory hire? (ii) If a surge in popularity for the factory’s brand allows them to raise the product price such that the gross profit rises to $150, how many workers will the factory hire now? (iii) Calculate the number of garments produced in each of the two cases above. Question 4 Using your knowledge and understanding of supply and demand analysis to graph the following and explain your graph: (a) an increase in labour productivity. (b) an increase in preference for work. (c) the trade union withdraws labour through a strike.(a) Why does the labour demand curve slope downwards? (b) A garment factory’s production function is provided in the table.The gross profit per unit (difference between selling price and material cost, but not including the cost of labour) is $100. # Workers Output 1 20 2 36 3 48 4 56 5 60 6 62 (i) If the wage rate is $1,000 a week, how many workers should the factory hire? (ii) If a surge in popularity for the factory’s brand allows them to raise the product price such that the gross profit rises to $150, how many workers will the factory hire now? (iii) Calculate the number of garments produced in each of the two cases above.(a) Why does the labour demand curve slope downwards? (b) A garment factory’s production function is provided in the table. The gross profit per unit (difference between selling price and material cost, but not including the cost of labour) is $100. # Workers Output 1 20 2 36 3 48 4 56 5 60 6 62 (i) If the wage rate is $1,000 a week, how many workers should the factory hire? (ii) If a surge in popularity for the factory’s brand allows them to raise the product price such that the gross profit rises to $150, how many workers will the factory hire now? (iii) Calculate the number of garments produced in each of the two cases above.