Assume that a noncompetitive firm's short run production function relates the level of output to labor input with the capital input fixed at K* Q=f(L,K* )= 40L - 2Ľ² for L<20 This firm faces the following demand function for its product 8500 - 350 P - The firm pays a wage of $70 per unit and has $5000 of fixed cost. a) What is the firm's profit maximizing level of output, price, and employment? b) What is the firm's profit or loss?

Assume that a noncompetitive firm's short run production function relates the level of output to labor input with the capital input fixed at K* Q=f(L,K* )= 40L - 2Ľ² for L<20 This firm faces the following demand function for its product 8500 - 350 P - The firm pays a wage of $70 per unit and has $5000 of fixed cost. a) What is the firm's profit maximizing level of output, price, and employment? b) What is the firm's profit or loss?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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