Assume a firm has the following short-run production function:\[ q(L) = L + 2L^2 - \frac{1}{3}L^3 \]Given the production function above, answer the following two questions:A) If this firm is going to maximize profits in the short-run by producing a strictly positive level of output $( q > 0 )$, what is the lowest level of labor $( L )$ they would employ?Minimum level of labor = [ ]B) Now suppose the firm must pay each unit of labor $( L )$ a wage of $10 $( w = 10 )$. If this firm is maximizing their profits in the short-run by hiring 4 units of labor $( L = 4 )$, what must be the price $( p )$ that they can charge for each unit of output they produce?Price = [ ] dollars

The change in q(output) due to the change in l(labor) is measured by MPL(marginal product of labor).…

Assume a firm has the following short-run production function: ) they would employ? ), what is the lowest level of labor ( q(L) = L + 2L² 3 Given the production function above, answer the following two questions: A) If this firm is going to maximize profits in the short-run by producing a strictly positive level of output ( Minimum level of labor = ) a wage of $10 ( ), what must be the price ( 9>0 Price = L B) Now suppose the firm must pay each unit a labor ( dollars L - w = 10 3 ). If this firm is maximizing their profits in the short-run by hiring 4 units of labor ( L = 4 L Р ) that they can charge for each unit of output they produce?

Assume a firm has the following short-run production function: ) they would employ? ), what is the lowest level of labor ( q(L) = L + 2L² 3 Given the production function above, answer the following two questions: A) If this firm is going to maximize profits in the short-run by producing a strictly positive level of output ( Minimum level of labor = ) a wage of $10 ( ), what must be the price ( 9>0 Price = L B) Now suppose the firm must pay each unit a labor ( dollars L - w = 10 3 ). If this firm is maximizing their profits in the short-run by hiring 4 units of labor ( L = 4 L Р ) that they can charge for each unit of output they produce?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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