Workers should the firm employ to maximize profits

Assignment Help Business Economics
Reference no: EM1315124

Q. A perfectly competitive firm operates in the short-run with labor as its only variable factor. Its production function is:
Q = -L3 + 10L2 + 88L where Q is output per week measured in tons also L is the number of workers employed. The weekly wage is $324 also the product sells for $3.24 per ton.

(a) At Illustrate what weekly output is marginal cost equal to average variable cost?

(b) Illustrate what is the minimum product price at which the firm will operate in the short-run?

(c) Elucidate how many workers should the firm employ to maximize profits?

(d) Compute the firm's point elasticity of demand for labor at the equilibrium in (c) above.

Reference no: EM1315124

What is the future value of savings

Susan made 4 uniform annual deposits of $1800 in a savings account that earned an interest rate of 2% per year. Her last deposit was made 7 years ago. What is the future value

Explain expected effect of grant on public safety spending

Suppose that the city of Cool currently levies a property tax for public safety at a rate of one percent of taxable value on a base of $10 million of taxable property. If the

Consider the problem of too much garbage

Consider the problem of too much garbage in the US. In Albert's home town, the demand for garbagecollection per bag is q^d = 2000 - 100p. It costs the city $2 for each bag it

Basic problem in applied economics-operations management

The news-vendor problem is a basic problem in applied economics/operations management whereby one must optimize inventory levels given some uncertain demand and fixed prices.

What is present value of after-tax net returns for system

Mr. Agirich of Aggie Farms must choose between two alternative machinery investment programs which will perform equally. The following information is available. What are the a

Fractional relationships between variables are not permitted

Fractional relationships between variables are not permitted in the standard form of a linear program.A cycle is an up and down movement in demand that repeats itself in less

The short-term nominal interest rates

Suppose the current money supply is $6,000. The required reserve ratio is 0.2. The Fed wants to increase the money supply by $600. Determine the following: All underlying work

Highway-building program and consequently ran large deficit

At the beginning of a recession, if the federal government spent tens of billions of dollars on a highway-building program and consequently ran a large deficit, how would this

Reviews

Write a Review

 
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd