Given the following parameters: Perfect Competition in Labour Market Perfect Competition in Output Market (Short Run) Wage = w = $10 Price = P = $20 Q = 6(L^0.5) Calculate the optimal amount of labour a. 32 b. 36

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Chapter10: Labor Market And Income Distribution
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Given the following parameters: Perfect Competition in Labour Market Perfect Competition in Output Market (Short Run) Wage = w = $10 Price = P = $20 Q = 6(L^0.5)

Calculate the optimal amount of labour

a. 32

b. 36

c. 24

d. 44

  • e. 16
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