Economics (MindTap Course List)
13th Edition
ISBN: 9781337617383
Author: Roger A. Arnold
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 26.1, Problem 3ST
To determine
Characteristics of a factor
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Define price taker .
Suppose a beverage company is profit-maximising. It has one factor of production, which is the amount of labour (l) it hires. For each hour of labour, the firm pays a wage 'w'. The production function is given by f(l) = l^1/2.(Assume that the price is equal to 1).a. Suppose that in equilibrium, the wage rate is fixed at w = 7. Solve for the firm’s optimal choice of how much labour to hire.b. Imagine the government votes to increase the minimum wage to w= 10. What happens to employment in the firm?c. Suppose the firm instead chooses to minimise the cost of producing a specific amount of q. Explain how this helps the firm maximise profits.
Christina runs an IT consulting firm in a competitive market. She recently determined that hiring anadditional consultant would mean that she wouldbe able to serve five more clients per week. Assuming her goal is to maximize her profits, explain whyChristina did not hire another consultant.
Chapter 26 Solutions
Economics (MindTap Course List)
Ch. 26.1 - Prob. 1STCh. 26.1 - Prob. 2STCh. 26.1 - Prob. 3STCh. 26.1 - Prob. 4STCh. 26.2 - Prob. 1STCh. 26.2 - Prob. 2STCh. 26.2 - Prob. 3STCh. 26.2 - Prob. 4STCh. 26 - Prob. 1QPCh. 26 - Prob. 2QP
Ch. 26 - Prob. 3QPCh. 26 - Compare the firms least-cost rule with how buyers...Ch. 26 - Prob. 5QPCh. 26 - Prob. 6QPCh. 26 - Prob. 7QPCh. 26 - Prob. 8QPCh. 26 - Prob. 9QPCh. 26 - Prob. 10QPCh. 26 - Prob. 11QPCh. 26 - Prob. 12QPCh. 26 - Prob. 13QPCh. 26 - Prob. 14QPCh. 26 - Prob. 15QPCh. 26 - Prob. 16QPCh. 26 - Prob. 1WNGCh. 26 - Prob. 2WNGCh. 26 - Prob. 3WNGCh. 26 - Prob. 4WNGCh. 26 - Prob. 5WNG
Knowledge Booster
Similar questions
- I want quicklyarrow_forwardMicroeconomics II is the most fun course you ever took. Explain? A profit-maximizing competitive firm uses just one input, x. Its production function is q= 4(x)^1/2. The price of out-put is $28 and the factor price is $7. The amount of the factor that the firm demands is?arrow_forwardwhat are two key problems that arise for the modern marginalist theory of the firm when the firm has a constant-returns-to-scale (CRS) technology?arrow_forward
- I want the answerarrow_forwardAssume a firm is trying to produce q0 units of output at the lowest total cost. The wage decreases, rotating the isocost line as shown in the below graph. Make the necessary changes to the graph to show the input combination that will now produce q0 at the lowest total cost. Make sure you show the new levels of labor and capital.arrow_forwardThe following table shows the relationship between the number of trainers working at the new gym (SD Fitness) and the number of clients they can train per week. These clients represent the output of the firm. Clients pay $60 per hour. Find the Marginal Product (MPL) for the 4th, 5th and 6th trainer. Find the Value of Marginal Product (VMPL) of the 4th, 5th and 6th trainer. SD Fitness’s trainers are paid $650 per week. How many trainers will the gym hire? How do you know?arrow_forward
- The production function of a competitive firm is described by the equation y = 2x11/2 6x21/2. The factor prices are p1 = $3 and p2 = $4 and the firm can hire as much of either factor it wants at these prices. What is the firm’s marginal cost?arrow_forwardLegendary for his business and investment acumen, Warren Buffett is frequently called the “Oracle of Omaha” after his birthplace in Omaha, Nebraska. As one of the world’s wealthiest business owner-investors, business executives are always interested in any insight or opinion Mr. Buffett might wish to share. Explain each one of the following statements made by Warren Buffett. (Quotations from The Wall Street Journal, September 23, 2002.) “You cannot be the high-cost producer in a commodity business.”“Sometimes it’s not even any good to be the low-cost producer.”arrow_forwardTim works 51 hours per week, and his wage is $20 per hour. If his wage increases to $40 per hour, and his labor supply curve is downward-sloping, this means:arrow_forward
- Suppose you run a flower-delivery business andemploy college students to drive the vans and makedeliveries. You are considering hiring an additionalworker. What information would you need toknow to decide whether doing so would increaseor decrease your profit?arrow_forwardwhat are the two most significant issues that occur for the current marginalist theory of the company when the firm employs constant-returns-to-scale (CRS) technology? Please answer correctly.arrow_forwardHow can stages of production be used to determine the most profitable number of workers to hirearrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Microeconomics: Private and Public Choice (MindTa...EconomicsISBN:9781305506893Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Economics: Private and Public Choice (MindTap Cou...EconomicsISBN:9781305506725Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning
Microeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Economics: Private and Public Choice (MindTap Cou...
Economics
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning