Free competition company produces a good Y with the following product functions Y=1/2 L1/2 where Lis labor a) Develop the company's cost function. The company has no regular expenses. b) Set up the company's profit maximization, and develop the companies supply curve c) The price for L (salary is W) is 10kr, and the market price for a good Y is 800kr. Draw the supply curve into a Price-quantity diagram. Mark the company's adjustment point. (Be precise and include the values on the axis)
Free competition company produces a good Y with the following product functions Y=1/2 L1/2 where Lis labor a) Develop the company's cost function. The company has no regular expenses. b) Set up the company's profit maximization, and develop the companies supply curve c) The price for L (salary is W) is 10kr, and the market price for a good Y is 800kr. Draw the supply curve into a Price-quantity diagram. Mark the company's adjustment point. (Be precise and include the values on the axis)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Free competition company produces a good Y with the following product functions
Y=1/2 L1/2 where Lis labor
a) Develop the company's cost function. The company has no regular expenses.
b) Set up the company's profit maximization, and develop the companies supply curve
c) The
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