Suppose a competitive firm is paying a wage of $12 an hour and sells its product at $3 per unit. Assume that labor is the only input. If hiring another worker would increase output by three units per hour, then to maximize profits the firm should Group of answer choices not change the number of workers it currently hires not hire an additional worker. hire another worker. There is not enough information to answer the question.

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A: There is one isoquant (q0) which shows all the possible combinations of L and K that produces the…

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Q: 11 Q3. y LAK and (p = $10, w = $5,r= $5). Find the optimal labor and capital, (L", K") to maximize…

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Q: MC ATC AVC D=MR Based on the graph above, the firm is earning:

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A: Part: A → The firm will hire laborers until the value of the marginal product (VMPL) is not equal to…

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A: * ANSWER :-  (7)

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A: Marginal product is the change in total product due to an additional unit of input.  Marginal…

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A: In a perfectly competitive environment, firms produce the profit-maximizing quantity of a good by…

Q: Suppose a firm produces the following products. Calculate and fil in the missing values in the table…

A: The value of marginal product of labor is the measure of the additional value generated by an…

Q: Suppose a competitive firm can hire a new worker to produce 10 extra units of production by paying…

A: Value of marginal product of Labor (VMPL) is the income from the marginal product from Additional…

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A: The marginal product of an input is the additional output that comes about as a result of adding one…

Q: Suppose the marginal product of labor equals 1/L. If the wage is $15 per unit of labor, what is the…

A: Marginal Product of Labor (MPL): - it is the change in total production due to the employment of an…

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A: The objective of the question is to calculate the marginal product of the 20th worker. The marginal…

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A: We are going to learn a concept known as Diminishing marginal returns.

Q: O both the noncompetitive firm and the purely competitive firm.

A:

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A: Parameters:w (wage rate), r (rental rate of capital), y (desired output level).α and β are the…

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A: Given, Total fixed cost = TFC = $3000 Variable cost= VC = $1000 Number of employees (L) =10 So,…

Q: 11 Q3. y=LAK and (p = $10, w = $5,r= $5). Find the optimal labor and capital, (L", K") to maximize…

A: The amount of labour that maximises production and profit while minimising expenses is referred to…

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A:

Q: Suppose that the production function of the firm is: Q = 100L1/2.K1/2  K= 100, P = $1, w =$50. and…

A: Answer: Given, Production function: Q=100L12K12 K=100 P=$1 w=$50 r=$40 Calculation: To find the…

Q: The production function for a price-taking firm is given by q = 2.5k0.4L0.4. What are the demand…

A: Note:  We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: please help

A: Marginal Product:Marginal product refers to the change in output due to the change in inputs.…

Q: Assume a firm is trying to produce q0 units of output at the lowest total cost. The wage decreases,…

A: Cost minimizing input combination is where isocost line is tangent to isoquant curve.

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Q: conomics 8. Consider a firm whose production function is q(L) = 60L -0.5L² when hiring L hours of…

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A: If the marginal product of labor increases because of a technological advancement then it will…

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A: The labor demand and supply in the US manufacturing firm: ES = 20 + 2w  -------------> Labor…

Q: suppose that we are in there long-run and a firm is choosing K and L to cost minimize. Suppose that…

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Q: 38) In the short run, the marginal product of labor might increase initially as more workers are…

A: Marginal product is the output that is derived from the addition of one extra unit of input.

Q: Arizona's unemployment insurance program is funded by a tax on employers.  In general, the tax rate…

A: The situation which in turn depicts that there are people who are in turn willing and also finding…