Suppose that a firm is producing in the short run with output given by: Q=250L-15L², The firm hires labor at a wage of $50 per hour and sells the good in a competitive market at P = $75 per unit. Find the firm's optimal use of labor and associated level of output.
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- 1. The market price for tomatoes is $2/pound. Lynn is too small to influence the price of tomatoes. Her tomato (short-run) production function is given by q= L3 where L measures hours of labor and q measures pounds of tómatoes. (a) demand curve for labor. Lynn hires labor from a competitive labor market. Find her short run (b) elastic than her short-run demand for labor? Explain your answer. Would you expect Lynn's long-run demand for labor to be more or lessSuppose that a firm's production function is given by: 150- Q = 14L -12 140- 130- 120- 110- 100- for L=0 to 7, where L is labor input per day and Q is output per day. Derive and draw the firm's demand for labor if the firm's output sells for $10 in a competitive market. The marginal product of labor (MP, ) is 14 - 2L. Using the line drawing tool, draw the firm's labor demand curve. Label this curve D, . 70 Carefully follow the instructions above, and only draw the required objects. 50- 30- 20- 10- 10 Quantity of labor (hours) Price of laborConsider a firm that produces output using industrial robots and skilled labor. Suppose it is the case that a reduction in the price of industrial robots causes the firm's labor demand curve for skilled workers to increase (i.e., to shift to the right). This implies that: There is diminishing marginal product of robots. O There is diminishing marginal product of skilled labor. O Robots and skilled labor are complements. O Robots and skilled labor are substitutes. The unit cost of skilled labor is below the unit cost of robots.
- Please do fast ASAP fastSuppose that a firm's production is given by: Q= 10L-L² , for L= 0 to 5, where L is labor input per day and Q is output per day. Derive and draw the firm's demand for labor if the firm's output sells for $10 in a competitive market. The marginal product of labor is 10-2L. a. How many hours of labor will the firm use when the wage is $30 per day? b. How many hours of labor will the firm use when the wage is $70 per day?At an output level of 99, what is the cost minimizing combination of Labor and Kapital? At an output level of level of 154, what is the cost minimizing level of Labor and Kapital If the price of the product is $2.00, what is the profit maximizing combination of Labor and Kapital? What is the total profit?
- 5. Suppose that a firm is producing in the short run with output given by:Q = 10L – 0.25L2, where L is the labour input. The firm hires labour at wage of €16per hour and sells the good in a competitive market at P = €8 per unit.a) Determine the firm’s marginal product of labour.b) Find the firm’s optimal use of labour, the associated level of output and the marginalproduct of labour at this employment level. Explain the meaning of the latter.c) Management of the firm has carefully measured output elasticity in the past three yearsand has determined that it is 1.2. What sort of returns to scale does the firm face?Interpret this number in one sentence.d-f please!Suppose that a firm is producing in the short run with output given by: Q = 67L - L2The firm hires labor at a wage of $20 per hour and sells the good in a competitive market at P = $25 per unit. Find the firm’s optimal use of labor.
- A manager hires labour and rents capital equipment in a very competitive market. Currently the wage rate is $12 per hour and capital is rented at $8 per hour, whereas the marginal product of labour is 60 units of output per hour and the marginal product of capital is 45 units of output per hour. Show if the firm is using the cost-minimizing combination of labour and capital and give appropriate advice if necessary.6. Each of the 10 firms has the production function q = √KL. The wage is 5 and the rent on capital is 10. Assume we are in the long run, so firms can vary both factors. Write an expression for one firm's cost minimization problem. Use whichever method you prefer to minimize cost and derive an expression for one firm's total cost: TC (9₁) c. Compute one firm's marginal cost and derive the inverse supply curve for one firm and the inverse supply curve for the market. What is the elasticity of supply? a. b.Q.8. Subject :- Economic