12. A firm uses capital and labour to produce widgets. In the short-run capital is fixed, while labour is variable. The short-run production function is X-L'+24L +240L Where X is the number of widgets produced in per week, and L is the number of workers employed. Each worker works a 40-hour week. The wage rate is $12 per hour. a. Calculate the range of values for L over which the firm is in stage I, stage Il and stage II b. what is the minimum product price at which the firm will operate in the short-run? c. The product price, over which the firm has no control, is such that the firm's maximum possible pure profit $ 1096 per week. In order to achieve that level of profit it must employ 16 workers. How much is the firm's total fixed cost?.

12. A firm uses capital and labour to produce widgets. In the short-run capital is fixed, while labour is variable. The short-run production function is X-L'+24L +240L Where X is the number of widgets produced in per week, and L is the number of workers employed. Each worker works a 40-hour week. The wage rate is $12 per hour. a. Calculate the range of values for L over which the firm is in stage I, stage Il and stage II b. what is the minimum product price at which the firm will operate in the short-run? c. The product price, over which the firm has no control, is such that the firm's maximum possible pure profit $ 1096 per week. In order to achieve that level of profit it must employ 16 workers. How much is the firm's total fixed cost?.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A firm uses capital and labour to produce widgets. In the short-run capital is fixed, while labour is variable. The short-run production function is X=-L3 + 24L2 + 240L Where X is the number of widgets produced in per week, and Lis the number of workers employed. Each worker works a 40-hour week. The wage rate is $12 per hour. Calculate the range of values for Lover which the firm is in stage I, stage II and stage III what is the minimum product price at which the firm will operate in the short-run? The product price, over which the firm has no control, is such that the firm's maximum possible pure profit $ 1096 per week. In order to achieve that level of profit it must employ 16 workers. How much is the firm's total fixed cost?