A firm's total product is given by 1 2 TPL = 80L - L² where L is the number of hours worked per week. The price of the firm's product is SEK 50 (the firm is a prize winner). The wage in the labor market is SEK 800 per hour (the firm also takes this as given). Evaluate the the following statements. Are they true or false? The firm's marginal product is zero if L = la 20. 1b is SEK 700. 1c. The firm's total revenue per week if L = 10 The optimal number of labor hours to purchase in the short run for the firm is 40 per week. week.
A firm's total product is given by 1 2 TPL = 80L - L² where L is the number of hours worked per week. The price of the firm's product is SEK 50 (the firm is a prize winner). The wage in the labor market is SEK 800 per hour (the firm also takes this as given). Evaluate the the following statements. Are they true or false? The firm's marginal product is zero if L = la 20. 1b is SEK 700. 1c. The firm's total revenue per week if L = 10 The optimal number of labor hours to purchase in the short run for the firm is 40 per week. week.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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