firm has a production function Y=150N^0.6. The real wage is W=30. The production process of this firm causes pollution. The government passes a law that requires the firm to stop polluting. This firm discovers that it can prevent pollution by hiring 0.2 additional workers for each worker in the production process to clean up. Let N denote the amount of labor hired on the production line. If the firm wants to maximize its profit, what should be the value of N?
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A firm has a production function Y=150N^0.6. The real wage is W=30. The production process of this firm causes pollution. The government passes a law that requires the firm to stop polluting. This firm discovers that it can prevent pollution by hiring 0.2 additional workers for each worker in the production process to clean up. Let N denote the amount of labor hired on the production line. If the firm wants to maximize its profit, what should be the value of N?
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- There is a firm making custom stuffed animals. The demand function for custom stuffed animals is: P = 1000 - 20Q The cost depends on how much of each of their inputs they use. It takes 3 inputs to make a stuffed animal: cotton, oil, and chorizo. The amount required, input prices, and restrictions are below: It takes 1 pound of cotton to make a stuffed animal. Cotton costs $20 per pound. They can buy up to 23 pounds of cotton. It takes 2 barrels of oil to make a stuffed animal. Oil costs $10 per barrel. They can buy up to 44 barrels of oil. It takes 3 chorizo burritos to make a stuffed animal. Burritos cost $5 per burrito. They can buy up to 100 burritos. Set this up in Solver to help them maximize profit by choosing the best quantity of stuffed animals to produce, subject to the constraints of the maximum amount of cotton/oil/burritos they can buy. In the space below, tell the profit that the firm will earn when they maximize its profit. PLEASE SHOW EXCEL WALKTHROUGH USING SOLVER.…Distinguish between technical efficiency and economic efficiencyConsider an ocean fishery. Suppose the total value of catch (TVC) is equal to 938 - 2B2 (TVC-1 is 1000 dollars), and the total cost (TC) is equal to 10B, where B is the number of boats in the fishery (B-1 is one boat). The marginal benefit from fishing is 93-2*2B, and the marginal cost is 10 (MB-1 is 1000 dollars). where B is the number of boats in the fishery (B-1 is one boat). (Note: This prompt will be referenced in the next few questions) How many boats will enter the fishery if this fishery is unregulated?