Suppose that a firm is producing in the short run with output given by: Q = 67L - L2 The 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.
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Suppose that a firm is producing in the short run with output given by:
Q = 67L - L2
The 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.
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- Suppose that a firm is producing in the short run with output given by: Q = 64L - L2The firm hires labor at a wage of $26 per hour and sells the good in a competitive market at P = $40 per unit. Find the firm’s optimal use of labor.Enter as a value. ROUND TO THE NEAREST WHOLE NUMBER.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's production function is given by: 150- Q = 14L -12 140- 130- 120- 110- 100- for L=0 to 7, where L is labor input per day and Q is output per day. Derive and draw the firm's demand for labor if the firm's output sells for $10 in a competitive market. The marginal product of labor (MP, ) is 14 - 2L. Using the line drawing tool, draw the firm's labor demand curve. Label this curve D, . 70 Carefully follow the instructions above, and only draw the required objects. 50- 30- 20- 10- 10 Quantity of labor (hours) Price of labor
- 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.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 lessSuppose 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.
- 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. 1. Suppose the fırm sells in a perfectly competitive market and is a price taker in the input market, how much labor will it hire to maximize profits? 2. How much wage will it pay? 3. Show the graph of the profit-maximizing level of L and w solved in 1&2.Consider the following table illustrating the hourly production of zidgets. Furthermore, suppose the wage rate is $15/hour; however, there are two firms, Firm A and Firm B, where Firm A has fixed cost of $10/hour and Firm B has fixed cost of $20/hour. L (workers) Q (units) 1 50 90 3 120 Firm B's total cost of producing Firm A's total cost of producing 90 zidgets is 90 zidgets. O greater than less than equal to not enough informationA 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?
- Suppose that a firm's production is given by: Q= 10L-L² , for L= 0 to 5, where L is labor input per day and Q is output per day. Derive and draw the firm's demand for labor if the firm's output sells for $10 in a competitive market. The marginal product of labor is 10-2L. a. How many hours of labor will the firm use when the wage is $30 per day? b. How many hours of labor will the firm use when the wage is $70 per day?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?Tom Petersen is considering renovating bar stools at Dreamland. The productionfunction for new bar stools is given byq= 0.5L0.5where q is the number of stools produced during the renovation week and l represents thea number of worker hours employed during the period. The firm is a price taker for both bar stools(which sell for P) and workers (which can be hired at a wage rate of w per hour).a. What is the cost function for this firm C(w,q)?b. What is the supply function for bar stools q(P,w)?c. What is the profit function for this firm (P,w)?d. What is the firm’s demand function for labor function L(P,w)?