The firm Greench produces Nutella. The production function is given by the following: Nutella = min{ 44 L, 27 K} Theprice of labor is $36, the price of capital is $10, the price of Nutella is $25, and Greench's costs are $3607. What isthe optimal amount of labor that the firm should hire?

step: 1To find the optimal amount of labor that the firm should hire, we can use the concept of cost…

Answered: The firm Greench produces Nutella. The…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Please explain what numbers are being plugged in to get the answer.
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Assume that the above data are for Ali's Surfboards firm which hires workers at $500 a week and its total fixed cost is $1,000 a week.Calculate APL,MPL, AVC, AFC, AC, and MC of each output in the table, ( Values are given for L=1, you are asked to do the rest up to L=7).Labor Output APL MPL AVC AFC AC MC
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The firm Greench produces Nutella. The production function is given by the following: Nutella = min{ 44 L, 27 K} The price of labor is $36, the price of capital is $10, the price of Nutella is $25, and Greench's costs are $3607. What is the optimal amount of labor that the firm should hire?