LABOR ECONOMICS
8th Edition
ISBN: 9781260004724
Author: BORJAS
Publisher: RENT MCG
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Question
Chapter 12, Problem 4P
(a)
To determine
Explain the negative function of the wage offered at hand.
(b)
To determine
Explain whether the slope in the marginal cost equation equals one dollar.
(c)
To determine
Explain the worker’s asking wage.
(c)
To determine
Explain the new asking wage.
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The variable x represents the number of HDTVs manufactured and sold in a given month. The variable p is the price charged when you sell a TV.
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Introduction to Calculus in Economics:
Calculus is a powerful tool used in economics. One of the initial applications areas is the study of a firm, a topic in microeconomics. An important function is the cost function function C (x), the cost of producing z items (of whatever they are selling). This question deals with just the cost function C (x).
Problem Set question:
The cost, in dollars, of producing a units of a certain item is given by
C (x) = 10x – 10T -9.
Find the production level that minimizes the average cost per unit.
The number of units that minimizes the average cost is
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