1. Widget factory Inc. in Wisconsin has the following production function: F(L,K) = 2L¹/2K1/2 L represent the number of labour hours. Workers at this factory are paid an hourly wage of $30 and they rent capital at $25/hour. Since this is a competitive market, the factory output the factory gets per is output is $50 per unit. Let's pretend the firm operates in the short run with capital fixed at 900, how many factory workers would Widget Factory Inc employ? What is their profit rate?
1. Widget factory Inc. in Wisconsin has the following production function: F(L,K) = 2L¹/2K1/2 L represent the number of labour hours. Workers at this factory are paid an hourly wage of $30 and they rent capital at $25/hour. Since this is a competitive market, the factory output the factory gets per is output is $50 per unit. Let's pretend the firm operates in the short run with capital fixed at 900, how many factory workers would Widget Factory Inc employ? What is their profit rate?
Microeconomics A Contemporary Intro
10th Edition
ISBN:9781285635101
Author:MCEACHERN
Publisher:MCEACHERN
Chapter7: Production And Cost In The Firm
Section: Chapter Questions
Problem 19PAE
Related questions
Question
![Question 2. (20)
1. Widget factory Inc. in Wisconsin has the following production function:
F(L,K) = 2L1/2 K1/2
L represent the number of labour hours. Workers at this factory are paid an hourly wage of $30 and
they rent capital at $25/hour. Since this is a competitive market, the factory output the factory gets
per is output is $50 per unit.
Let's pretend the firm operates in the short run with capital fixed at 900, how many factory workers
would Widget Factory Inc employ? What is their profit rate?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd867a4be-8d04-48d8-8f5d-600a4c374df8%2F595d83b6-d1aa-460b-b4d6-cb9b51082c24%2Fnnea93h_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Question 2. (20)
1. Widget factory Inc. in Wisconsin has the following production function:
F(L,K) = 2L1/2 K1/2
L represent the number of labour hours. Workers at this factory are paid an hourly wage of $30 and
they rent capital at $25/hour. Since this is a competitive market, the factory output the factory gets
per is output is $50 per unit.
Let's pretend the firm operates in the short run with capital fixed at 900, how many factory workers
would Widget Factory Inc employ? What is their profit rate?
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 5 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
![ECON MICRO](https://www.bartleby.com/isbn_cover_images/9781337000536/9781337000536_smallCoverImage.gif)
![Economics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781337617383/9781337617383_smallCoverImage.gif)
Economics (MindTap Course List)
Economics
ISBN:
9781337617383
Author:
Roger A. Arnold
Publisher:
Cengage Learning
![ECON MICRO](https://www.bartleby.com/isbn_cover_images/9781337000536/9781337000536_smallCoverImage.gif)
![Economics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781337617383/9781337617383_smallCoverImage.gif)
Economics (MindTap Course List)
Economics
ISBN:
9781337617383
Author:
Roger A. Arnold
Publisher:
Cengage Learning
![Microeconomics](https://www.bartleby.com/isbn_cover_images/9781337617406/9781337617406_smallCoverImage.gif)
![Micro Economics For Today](https://www.bartleby.com/isbn_cover_images/9781337613064/9781337613064_smallCoverImage.gif)