1. The market price for tomatoes is $2/pound. Lynn is too small to influence the price of tomatoes. Her tomato (short-run) production function is given by q-LI where L measures hours of labor and q measures pounds of tomatoes. (a) demand curve for labor. Lynn hires labor from a competitive labor market. Find her short run Would you expect Lynn's long-run demand for labor to be more or less (b) elastic than her short-run demand for labor? Explain your answer.

1. The market price for tomatoes is $2/pound. Lynn is too small to influence the price of tomatoes. Her tomato (short-run) production function is given by q-LI where L measures hours of labor and q measures pounds of tomatoes. (a) demand curve for labor. Lynn hires labor from a competitive labor market. Find her short run Would you expect Lynn's long-run demand for labor to be more or less (b) elastic than her short-run demand for labor? Explain your answer.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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