10. A firm uses a single input, labor, to produce output qaccording to the production function qt 8√ The commodity sells for $150 per unit and the wage rate is $75 per hour. quantity of L. Find the profit-maximizing Find the profit-maximizing quantity of q. What is the maximum profit? a. b. C. d. Suppose now that the firm is taxed $30 per unit of output and that the wage rate is subsidized at a rate of $15 per hour. Assume that the firm is a price taker, so the price of the product remains at $150. Find the new profit-maximizing levels of L, q, and profit.

10. A firm uses a single input, labor, to produce output qaccording to the production function qt 8√ The commodity sells for $150 per unit and the wage rate is $75 per hour. quantity of L. Find the profit-maximizing Find the profit-maximizing quantity of q. What is the maximum profit? a. b. C. d. Suppose now that the firm is taxed $30 per unit of output and that the wage rate is subsidized at a rate of $15 per hour. Assume that the firm is a price taker, so the price of the product remains at $150. Find the new profit-maximizing levels of L, q, and profit.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

1. Consider a firm in a perfectly competitive industry that must decide how much labor to hire (in the short run, i.e., in the background the capital is fixed). The firm’s marginal product of labor is 110-5L. It takes as given an output price P = 2, and the wage = 20. a. Please calculate the optimal quantity of labor for this firm to hire within this setting. b. Would a monopsonist employer in this same situation hire more or less labor? Why? c. Discuss a possible basis for state regulations of employment within 'company towns'.
11:16 Fri 10O Dec * 9 80% ... managebac-prod-china.s3.cn-north-1.amazonaws.com.cn A 22 of 46 AP Microeconomics Page 21 of 46 AP CollegeBoard Test Booklet Unit 5 Problem Set - FRQ's Include correctly labeled diagrams, if useful or required, in explaining your answers. A correctly labeled diagram must have all axes and curves clearly labeled and must show directional changes. If the question prompts you to "Calculate," you must show how you arrived at your final answer. The table below shows the short-run production function for Josh's Consulting Firm. Number of Consultants Total Product per Hour 1 21 2 43 3 66 4 88 108 6. 126 7 141 8. 151 (a) After which consultant do diminishing marginal returns begin for Josh's Consulting Firm? Explain using numbers. (b) Assume Josh's Consulting Firm sells its consulting services in a perfectly competitive market at a unit price of $2. Calculate the marginal revenue product of the fifth consultant. Show your work. (c) Josh's Consulting Firm hires…
Economics
6. Monopsony basics Consider a newspaper in a small town that has monopsony power in hiring journalists. The following table shows the labor hours that will be supplied at each of the given hourly wages, as well as the total cost of labor at each quantity of labor. Suppose the newspaper's demand for labor as a function MVP of the marginal value product of labor (MVPL) is given by L= 5.5- 20 Compute the marginal expense (MEL) and marginal value product (MVPL) of adding an additional hour at each quantity and enter the values into the following table. Hourly Wage WAGE (Dollars per hour) 90 80 60 10 100 40 20 30 20 40 70 10 50 0 30 The following graph depicts the supply of labor in this market. Labor Supplied (Hours) Use the grey points (star symbol) to plot the marginal expense at the five quantities of labor given in the previous table. Then use the blue points (circle symbol) to plot the firm's demand for labor as a function of the MVPL- 0 1 1 2 2 3 3 4 5 Total Labor Cost (Dollars per…
ss
Please see the attached 94
Q63
Should a Heart Surgeon Do Her Own Plumbing? A heart surgeon is skilful at unplugging artenes and rerouting the flow of blood, and these skills also make her a very skilful plumber. She can clear a clogged drain in 6 minutes, about 10 times faster than the most skillful plumber in town Suppose the surgeon earns $20 per minute in heart surgery and the best plumber in town charges $100 per hour. a. Should the surgeon clear her own clogged drains? O A. No, her opportunity cost is too low. O B. No, her opportunity cost is too high. OC. Yes, her opportunity cost is too high. OD. Yes, her opportunity cost is too low b. How much does the surgeon gain by hiring the plumber to clear a clogged drain? S (Enter your response as an integer )
Please help with the following.
hg one car by two family members 7. Firm 1 produces output X with a cost function TC₁=X². Firm 2 produces output Y with a cost function TC₂ = Y2+ XY. Each firm faces perfectly competitive market for its product. The competitive price of good produced by firm 1 is px-26 PLN and the competitive price of good produced by firm 2 is py=22 PLN. The Pigouvian tax imposed on firm 1 should be: a) 2 PLN b) 6 PLN c) 3 PLN d) 5 PLN e) none of the above
10
You pay for school tuition, and for each class you attend. Suppose that you stopped attending class after the first semester, but still pay school tuition. Which of the following is this an example of? Sunk cost Equimarginal principle O Positive net gain O Marginal product of labor QUESTION 4 Evaluate the following statement: "A firm producing at the point where marginal benefit is not equal to the derivative of total cost is adhering to the equimarginal principle" False True