The town of podunk has decided to provide security services

Reference no: EM13697558

The town of Podunk has decided to provide security services to its resident by hiring workers (L) and guard gogs (D).security services (S) are produced according to the production function S=squr LD

And residents of town wish to consume 10 units of such services per period

Suppose now that Podunk is only hirer of people who work with guard dogs and supply curve for such workers is given L = 10w where is per period wage of guard dog handlers .if dogs continue to rent for $1per period how much of each input should the town hire to produce the desired services at minimal cost? What will those costs be? What will the wage rate of dog handlers be?

Reference no: EM13697558

Questions Cloud

Suppose the economy is in a deflationary gap : Suppose the economy is in a deflationary gap. Which of the following public policies would help bring the economy towards potential GDP?

Economy in a deflationary gap : Assume the economy is currently at potential real GDP. Which of the following would put the economy in a deflationary gap?

Increase in real gross domestic product demanded : The interest rate effect tells us that a reduction in the price level causes people to convert cash for interest bearing assets. This behaviour causes a increase in the interest rate, which subsequently causes an increase in real gross domestic produ..

Why is this double disruptive and harmful to the economy : When the economy is operating at full employment, why is an increase in aggregate demand not helpful to the economy? When the economy is hit with a supply shock, such as oil prices rising from $25 a barrel to $75 a barrel, why is this double disrupti..

The town of podunk has decided to provide security services : The town of Podunk has decided to provide security services to its resident by hiring workers (L) and guard gogs (D).security services (S) are produced according to the production function S=squr LD

Competitive firms demand for a factor of production : Consider a competitive firm's demand for a factor of production as a function of the factor price when prices of other factors are given. let us consider two case-The quantity of output is fixed, The price of the product is fixed. the elasticity of d..

Calculate deadweight loss associated with existence : How does the co-insurance policy affect the quantity of doctor visits consumed? Calculate the deadweight loss associated with the existence of insurance.

Distinguish between adverse selection and moral hazard : Distinguish between adverse selection and moral hazard. What are a bank's major sources and uses of funds?

Explain the logic underlying the law of one price : Explain the logic underlying the law of one price and the theory of purchasing power parity. How will a decrease in the federal government's budget deficit affect the equilibrium interest rate in the bond market? Explain using the bond demand and sup..

User Account

All Pages