Suppose that a firm is producing in the short run with output given by: Q = 10L – 0.25L2, where L is the labour input. The firm hires labour at wage of €16 per hour and sells the good in a competitive market at P = €8 per unit. a)  Determine the firm’s marginal product of labour. b)  Find the firm’s optimal use of labour, the associated level of output and the marginal product of labour at this employment level. Explain the meaning of the latter. c)  Management of the firm has carefully measured output elasticity in the past three years and has determined that it is 1.2. What sort of returns to scale does the firm face? Interpret this number in one sentence.

Question Onea.    The Mature Corporation produces yo-yos at its factory. Both its labor and capital markets are competitive. Wages are K12 per hour and yo-yo-making equipment (a computer controlled plastic extruding machine) rents for K4 per hour. The production function is q = 40K 0.25L 0.75, where q = boxes of yo-yos per week, K = hours of yo-yo equipment used, and L = hours of labor. i    Determine the cost minimizing capital-labor ratio at this firm.  ii    Determine the amount of labour used in production as a function of q. b.    Briefly explain factor that contribute to frictional unemployment in the economy.c.    Explain why a Marginal factor cost (MFC = W) is perfectly elastic in a perfect competitive industry? d.    Explain why internal markets for labor are every important for a firm?

am. 118.

Please don't switch the subject to Advanced Math. For some reason whenever the subject is switched to those two. I don't receive any help it is a bug. please help me thank you.