A firm's short run revenue function is given byR = 8e – 4 e^2, and its profit function is givenby N = R – w, where "e" is the level of effortprovided by a worker and "w" is the wage rateof the worker. Suppose that the worker'sproblem is to choose the level of e tomaximize his benefit function B = 2w – 1.5e.Compute the levels of effort and profit for thefollowing wage arrangement:a) W = 0.4 R;b) W = R – 10;c) Why these different schemes generatedifferent outcomes?

Revenue is defined as the amount which is received from selling a good or a service. Profit is…

Answered: A firm's short run revenue function is…

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 employs labor and capital by paying $40 per unit of labor employed and $200 per hour to rent a unit of capital. The production function is given by: Q=60L-2L^2+180K-3K^2, where Q is total output. Determine the firm's optimal combination of capital (K) and labor (L)?
The production function is f(x1, x2) = x1/21x1/22. If the price of factor 1 is $6 and the price of factor 2 is $12, in what proportions should the firm use factors 1 and 2 if it wants to maximize profits? Question 21 Answer a. x1 = 12x2. b. x 1 = x2. c. x1 = 2x2. d. We can't tell without knowing the price of the output. e. x1 = 0.50x2.
I don't believe part (b) was fully answered. Can you please solve it with more detail?
Please get correct, means a lot. Super important.
Given a demand function of P = 119 - 7Qd and supply of P = 38 + 4Qs, the utility function U = Qx0.4Qy(1-0.4) and the consumer budget Income = 5Qx + 6Qy along with the firm production function Q = K0.4L0.6 with the isocost 224 = 23K + 13L. The economic growth factor is 1.8. What is the total utility of HH given the level of factor income? Please enter your response as a positive number with 1 decimal and 5/4 rounding (e.g. 1.15 = 1.2, 1.14 = 1.1).
√N. The 3. Suppose that the production function of an economy is given by Y = (representative) firm hires workers (N) at a wage rate w. Assume that the firm maximizes profits by choosing how much to produce and how many workers (hours) to hire. (Remember that the profit function is Y - WN.) = The representative consumer has preferences given by the utility function U(-) = log (c) + log (l), with a marginal rate of substitution given by c/l, where c is consumption and I is the leisure time. The endowment of time of an individual is 24, which has to be allocated between labor and leisure. (Recall that N + 1 = 24.) a. Derive an expression for the labor demand function. b. Derive an expression for the labor supply function. c. Compute the equilibrium wage rate and the equilibrium quantity of labor employed. d. Consider a technical improvement of the production process that determines a new production function Y = 2√N. Compute the new equilibrium quantity of labor and wage rate. e. Draw a…
Assume an economy consists of two agents, a and b. Individual a has available 1 unit of time which he divides between leisure ra and labor ℓa . Likewise, individual b has available 1 unit of time which he divides between leisure rb and labor ℓb. Commodity x is produced by one competitive firm according to the production function: x=√L , where L denotes labor hired. The firm is fully owned by agent a. The utility function of the two individuals are: u(xa,ra)=xara and u(xb,rb)=xbrb . Taking the price of labor as the numéraire (i.e. w=1), find the competitive equilibrium for this economy.
If a firm has the the production function F(K, L) = min(3K, 4L) What is its contingent demand for labor, Le(w, v, q)? q 4w+3v q (b) 3w+4v (c) 1/31 (d) 1/1 (e) W when w 4v 3
Consider the Labor Economics Question. This will provide insight into the idea of the optimal number of workers and the value of the marginal product of labor. If wages in the restaurant is $16.80 per hour and the price of a Hamburger is $8.30 and the production function for the workers is: Q = 11L – 0.25L2 How many workers should Your Restaurant employ during the lunch hour to maximize profits? 1 Point (note—the value of the marginal product of labor and the marginal revenue product are the same) We maximize profits which are total revenues less total costs:
Consider the following production function with inputs L and K: Q = (L 0.5 + K0.5)2. The input prices are r = 2 and w = 1. 1) Consider a technological advacement that promotes the productivity of capital such that Q = (L 0.5 + (2K)0.5)2, while w = r = 1. What is the optimal level of K and L?
Consider a price-taking firm whose production function is given by q=3L1/5 K1/9 where L and K denote respectively the amount of labour and capital the firm uses to produce q units of output. Suppose the price of labour is w = 16, the price of capital is 24 and the price of the firm's output is p=225 . Derive the firm's conditional demand for capital. Then enter below the amount of capital the firm would use to produce 100 units of output at minimum cost.

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