10. A firm uses a single input, labor, to produce output qaccording to the production function qt 8√ The commodity sells for $150 per unit and the wage rate is $75 per hour. quantity of L. Find the profit-maximizing Find the profit-maximizing quantity of q. What is the maximum profit? a. b. C. d. Suppose now that the firm is taxed $30 per unit of output and that the wage rate is subsidized at a rate of $15 per hour. Assume that the firm is a price taker, so the price of the product remains at $150. Find the new profit-maximizing levels of L, q, and profit.

10. A firm uses a single input, labor, to produce output qaccording to the production function qt 8√ The commodity sells for $150 per unit and the wage rate is $75 per hour. quantity of L. Find the profit-maximizing Find the profit-maximizing quantity of q. What is the maximum profit? a. b. C. d. Suppose now that the firm is taxed $30 per unit of output and that the wage rate is subsidized at a rate of $15 per hour. Assume that the firm is a price taker, so the price of the product remains at $150. Find the new profit-maximizing levels of L, q, and profit.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

6.
10. A firm uses a single input, labor, to produce output qaccording to the production function
q8√ The commodity sells for $150 per unit and the wage rate is $75 per hour.
Find the profit-maximizing quantity of L.
Find the profit-maximizing quantity of q.
What is the maximum profit?
a.
b.
C.
d.
Suppose now that the firm is taxed $30 per unit of output and that the wage
rate is subsidized at a rate of $15 per hour. Assume that the firm is a price taker,
so the price of the product remains at $150. Find the new profit-maximizing levels
of L, q, and profit.

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