What is the value of the marginal product of labor

Assignment Help Business Economics

Reference no: EM13838849

Assume all markets are competitive, the product price is p = $2 per unit, the wage rate is w = $16 per hour and the firm's production function is q=E(36?E), where E is the level of employment and the firm's fixed costs are zero.

a) Write down the firm's profit in terms of E.

b) What is the value of the marginal product of labor? [Hint: MPE=36?2 E. ]

c) Use your answer to (b) to calculate the profit maximizing level of employment, denoted E*. What are the firm's maximum profits?

Reference no: EM13838849

Questions Cloud

What key factors caused the confrontation at wounded knee : What key factors caused the confrontation at Wounded Knee. What motivated the strikers in 1877. How did their opponents seek to delegitimize workers' grievances and win support for private business

In the case of spillover benefits or costs : A market in which there is an additional transaction that would benefit a buyer, a seller, and any third parties affected by the transaction is called. In the case of spillover benefits or costs,

Calculate the density of gallium arsenide : Gallium arsenide (GaAs) has the zinc blende structure. The gallium atoms are in FCC packing and the arsenic atoms occupy half the tetrahedral sites. Calculate the density of Gallium arsenide (GaAs) using the following data. Covalent Radius Ga 1.26 ..

Draw supply- demand diagram of the federal funds market : Draw a supply- demand diagram of the federal funds market and show the effects of a Federal Reserve Purchase of $85 billion in US Treasury Notes during a Quantitative Easing Campaign after the Fed has already lowered its Fed funds target to 0 - .25%.

What is the value of the marginal product of labor : Assume all markets are competitive, the product price is p = $2 per unit, the wage rate is w = $16 per hour and the firm's production function is q=E(36?E), where E is the level of employment and the firm's fixed costs are zero. What is the value of ..

Calculate the number of moles of crystal waterper : Calculate the number of moles of crystal waterper formula unit of manganese perchlorate. Decide which sample is most likely to represent the correct result, and explain what might have gone wrong with the other.

Workers marginal product : If the marginal product of the 4th worker hired is 6, and the marginal product of the 5th worker hired is 4, you should not hire the 5th worker because your profit would decrease since the 5th worker’s marginal product is less than the marginal produ..

The times they are a changin : Constitution Day is September 17. To quote Bob Dylan, "The times they are a changin'." Our modern world paradigms and technology have brought to light some interesting discussions regarding our country's constitution. So, I thought it would be intere..

Definition of statutes of general application : What is a very good definition of Statutes of General Application?

User Account

All Pages