a. Derive the short-run labour demand curve of an individual competitive firm. Be sure to state all of your assumptions clearly. b. Illustrate this demand curve in a carefully labeled diagram. c. This labour demand curve slope downwards because the firm faces a downward - sloping demand curve for its product. True, false or uncertain. Explain with reference to your derivation and assumptions in part a. (No additional diagram required ) **please Make Diagram and explain**

a. Derive the short-run labour demand curve of an individual competitive firm. Be sure to state all of your assumptions clearly. b. Illustrate this demand curve in a carefully labeled diagram. c. This labour demand curve slope downwards because the firm faces a downward - sloping demand curve for its product. True, false or uncertain. Explain with reference to your derivation and assumptions in part a. (No additional diagram required ) please Make Diagram and explain

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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How is the LRAC derived? Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer. a b Question 28 C d by drawing an average cost curve in which capital is variable but labor is fixed at the largest amount the firm can hire by assuming the firm is minimizing total costs at all levels of output by finding the largest amount of capital the firm can afford to use, and viewing the output capabilities of that capital amount by finding the lowest average cost of producing any level of output, assuming all inputs can be varied
You are a newspaper publisher. You are in the middle of a one-year factory rental contract that requires you to pay $500,000 per month, and you have contractual salary obligations of $1,250,000 per month that you can't get out of. You also have a marginal printing cost of $0.25 per paper as well as a marginal delivery cost of $0.10 per paper. Instructions: Enter your answers rounded to two decimal places. a. If sales fall by 20 percent from 1,000,000 newspapers per month to 800,000 newspapers per month, what happens to the AFC per newspaper? AFC per newspaper (Click to select) v from $ to $ b. What happens to the MC per newspaper? MC per newspaper (Click to select) v c. What happens to the minimum amount that you must charge to break even? It (Click to select) v from $ to $
a. Derive the short - run labour demand curve of an individual competitive firm. Be sure to state all of your assumptions clearly. b. Illustrate this demand curve in a carefully labeled diagram. c. Suppose that a technological innovation allows firms to produce more output with the same amount of capital and labour. How does this affect the firm's short - run labour demand curve? Explain with reference to your derivation and assumptions in part a. d. Illustrate the effect of this technological innovation on the labour demand curve using your diagram in b. **please make the diagram**
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3. A cost minimizing firm with q = K¹/21/2 that produces q = 40 pays w = 8 and r = 2. a. Provide an Isoquant and Isocost Diagram to illustrate and quantify this firm's choices for capital and labour as Bundle A. b. Next month the firm will reduce output to q = 20. In the short-run, Bundle B, the firm cannot change capital. In the long run, Bundle C, both capital and labour are variable. Update your diagram with calculated values for Bundles B and C.
The following five individuals have different utility functions over food (good x) and clothing (good y): 1) u₁(x, y) = 3x²y 2) u₂(x, y) = 2√x + y 3) Uz(x, y) = x0.6y0.4 4) u₁(x, y) = x² + y² 1 5) us(x, y) = x + 3y For each of these people: a) Compute their marginal utilities of good x, MUx = Ju(x,y) MU, = ду du(x,y) ax b) Check whether the property of "more is better" is satisfied for both goods? Explain. [Hint: Check whether marginal utilities are positive assuming positive amounts of good x and good y] ƏMUX əx and marginal utility of good y, c) Does the marginal utility of good x diminish, remain constant, or increase as each of the individuals buys more x? Explain. [Hint: There are 2 ways to do it: 1) visually check what happens to the expression of MUx when x increases (does it decrease, keep constant or decrease?); or 2) take the partial derivative of this marginal utility with respect to x, that is ƏMUx .aMUX ƏMUX If 0, the marginal utility of x is increasing in x] d) Does the…
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(1) Let's go back to the beginning. q = AL^aK^1-a Suppose labor is fixed at some level L, a = 0.5, and A = 1. Calculate K* a)What is T C* ? b)What is the short-run fixed cost?
Q 1.The hiring of labour with fixed factor of production under short run after sometimes leads to increase in cost only. What's your opinion at what stage of production producer should make addition in labour, identify which concept in economics explains the whole situation, justify your answer why it happens with the help of table and diagrams
E. Consider the following production function 1. q = A kº |B p. What is the indirect profit function? q. Show that Hotelling's lemma holds. r. Let k is constant at ko=1 a. What is the contingent labor demand curve? b. What is the indirect cost function? c. What is the firms supply curve? d. If there are identical 1000 firms, then what is the market supply curve?