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

Acceptance of new or replacement technology

The technology acceptance model (TAM) is a two-factor model that describes user acceptance of new or replacement technology solutions (Davis, 1989). This evaluation model ha

Most likely degree of rivalness and exclusion cost

For each of the following goods, give your best estimate of its most likely degree of rivalness and (relative) exclusion cost, using the definitions of these variables and the

Soda fountain sell ice cream in perfectly competitive market

Stephanie's Soda Fountain sells ice cream in a perfectly competitive market and is producing its profit-maximizing level of output. Suppose further that at this level of produ

Trade balance between china and the u.s.

Consider a couple's decision about how many children to have.Assume that over a lifetime a couple has 200000 hours of time either work or raise children.The wage is RM10 per

Which approximates level that monopolist would charge

Where formal cartels are illegal, what techniques can firms use to attempt to prevent price wars from breaking out and to maintain a price level in the market, which approxima

Reserve requirements associated with existing deposits

It has been determined that, in aggregate, financial institutions with depository accounts currently hold excess reserves equal to $3 billion—that is, they hold $3 billion mor

What is the total profit at the optimal output level

Suppose that you can sell as much of a product (in integer units) as you like at $61 per unit. Your marginal cost (MC) for producing the qth unit is given by: MC=9q This means

Charismatic and transformational leadership styles

Organizational leadership - What are Charismatic and transformational leadership styles and how do the different leadership styles affect the organization or business? What ar


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