Assume a firm has the following short-run production function: ) they would employ? ), what is the lowest level of labor ( q(L) = L + 2L² 3 Given the production function above, answer the following two questions: A) If this firm is going to maximize profits in the short-run by producing a strictly positive level of output ( Minimum level of labor = ) a wage of $10 ( ), what must be the price ( 9>0 Price = L B) Now suppose the firm must pay each unit a labor ( dollars L - w = 10 3 ). If this firm is maximizing their profits in the short-run by hiring 4 units of labor ( L = 4 L Р ) that they can charge for each unit of output they produce?

Assume a firm has the following short-run production function: ) they would employ? ), what is the lowest level of labor ( q(L) = L + 2L² 3 Given the production function above, answer the following two questions: A) If this firm is going to maximize profits in the short-run by producing a strictly positive level of output ( Minimum level of labor = ) a wage of $10 ( ), what must be the price ( 9>0 Price = L B) Now suppose the firm must pay each unit a labor ( dollars L - w = 10 3 ). If this firm is maximizing their profits in the short-run by hiring 4 units of labor ( L = 4 L Р ) that they can charge for each unit of output they produce?

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter16: Labor Markets

Section: Chapter Questions

Problem 16.7P

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