Cost parameter, Managerial Economics

A toy manufacturer makes output according to the production function:

2497_aa.png

where n is the number of workers employed by the firm, O is a technological parameter and g the workers' effort cost parameter. Assume the firm is profit maximizing.

a) Assume  the firm sells its products at a price p and pays its workers a fixed salary w. What is the optimal number of employees the firm should hire?

 

 

Posted Date: 3/26/2013 3:16:34 AM | Location : United States







Related Discussions:- Cost parameter, Assignment Help, Ask Question on Cost parameter, Get Answer, Expert's Help, Cost parameter Discussions

Write discussion on Cost parameter
Your posts are moderated
Related Questions
PUBLIC SECTOR BORROWING REQUIREMENT (PSBR) Public Sector Borrowing Requirement (PSBR) is the amount which the government needs to borrow in any one year to finance an excess e

free trade promotes a mutually profitable regional division of labour greatly enhances the potential real national product ofall nations and makes possible higher standards of livi

Q. What is Right Angled Isoquant? This presumes zero substitutability of factors of production. There is just one method of producing any one commodity. In this case, isoquant

Q. Types of production function? Production function is of two different forms:  The variable proportion production function The fixed proportion production functio

Measures to control inflation An inflationary situation can effectively be addressed/tackled if the cause is first and foremost identified.   Governments have basically three

When is production profitable according to price-taking firm at profit, break-even or loss? Production profitable at profit, break-even or loss: a. When TR > TC, in that cas


DETERMINANTS OF MONEY SUPPLY The total supply of nominal money in the economy is determined by the joint behaviour of the central bank which controls the total issue of the hig

a) What do you understand by equilibrium National Income and to what extent is economic growth beneficial to an economy? b) Explain using both diagrams and mathematical tools,

What is the Permanent Income Hypothesis? What is the theory's potential relevance for assessing the effects of temporary tax cuts for the purpose of fiscal stimulus? If you were