LABOR ECONOMICS
8th Edition
ISBN: 9781260004724
Author: BORJAS
Publisher: RENT MCG
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Chapter 11, Problem 5P
To determine
Determine the efficiency wage level.
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Consider the following production function:
q= 100L0.8K0.4
Currently the wage rate (w) is $15.00 and the price of capital (r) is $5.00.
If the firm is using 200 units of capital in production, how much labor should be employed to minimize costs?
Labor input=units. (Enter a numeric response using a real number rounded to two decimal places.)
Consider the following production function:
Currently the wage rate (w) is $5.00 and the price of capital (r) is $5.00.
If the firm is using 20 units of capital in production, how much labor should be employed to minimize costs?
Labor input =
units. (Enter a numeric response using a real number rounded to two decimal places.)
q=100L0.80.4
Consider the following production function:
q= 100L0.8K0.4
Currently the wage rate (w) is $15.00 and the price of capital (r) is $5.00.
If the firm is using 200 units of capital in production, how much labor should be employed to minimize costs?
Labor input= units. (Entera numeric response using a real number rounded to two decimal places.)
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