3. In the short term, a company has the following cost function and product function. C(N)= 10 000 + wN x = f(N) = 5N0.5 The company produces a product that is sold in the market for a price of NOK 1,000 per unit. The workforce has a price of NOK 500 per unit. a) How many units of labor will the company use? b) How many units of the product will the company produce? c) What will be the company's profit? d) Assume that the price of labor is unknown. What will be the company's demand curve for labor as a function of wages? e) Assume that the price of the product is unknown. What will be the company's supply curve for the product as a function of price?

3. In the short term, a company has the following cost function and product function. C(N)= 10 000 + wN x = f(N) = 5N0.5 The company produces a product that is sold in the market for a price of NOK 1,000 per unit. The workforce has a price of NOK 500 per unit. a) How many units of labor will the company use? b) How many units of the product will the company produce? c) What will be the company's profit? d) Assume that the price of labor is unknown. What will be the company's demand curve for labor as a function of wages? e) Assume that the price of the product is unknown. What will be the company's supply curve for the product as a function of price?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The total revenue function for a product is given by R=655x dollars, and the total cost function for this same product is given by C=19,250+70x+x2, where C is measured in dollars. For both functions, the input x is the number of units produced and sold. a. Form the profit function for this product from the two given functions. b. What is the profit when 25 units are produced and sold? c. What is the profit when 43 units are produced and sold?
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