A 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. How much labor (L) does will this company employ? What is the wage this company will offer its employees?

A 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. How much labor (L) does will this company employ? What is the wage this company will offer its employees?

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter29: Resource Markets

Section: Chapter Questions

Problem 7E

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