Amount of labor , Managerial Economics

Assignment Help:

One lumber producer may locate a plant in the same area.  If it does, there will be more competition for labor and the labor supply function facing Northern will shift to
            w = 50 + 0.04L dan ME = 50 + 0.08L

Because of increased competition in the market for lumber, Northern demand function will become more elastic with the price elasticity of demand decreasing to -4.0.

Requirements

1.    Determine the amount of labor that the firm should employ in order to maximize profit under this new labor market condition.

2.    Determine the new wage rate that the firm will have to pay.

3.    What price will the firm charge per unit of output?


Related Discussions:- Amount of labor

Short-term policies to cure balance of payment deficits, Short-Term Policie...

Short-Term Policies Deflation is a policy of reducing expenditure with the intention of curing a deficit by reducing the demand for imports.  This reduction of expenditure m

Short run cost function, how much output should a firm produce? 80$ per uni...

how much output should a firm produce? 80$ per unit C(Q)=40+8Q+2Qsquared

Economics for accountants, Economics for Accountants A few teachers an...

Economics for Accountants A few teachers and some students have questioned the rationale for including economics in a course of study for professional accountants. In order to

two employees at a yearly rate, A profit-maximizing firm faces the followi...

A profit-maximizing firm faces the following options for hiring workers: a) Assume the firm has limited space so that it can only hire one worker. Which type of employee sh

Salvatore, manual problems solution of demand theory

manual problems solution of demand theory

Limits on the process of bank deposit creation, Limits on the process of ba...

Limits on the process of bank deposit creation On the demand side , there may be a lack of demand for loans, or at least of borrowers who are sufficiently credit worthy .

Williamson - wachter and harris model, Williamson, Wachter and Harris (1975...

Williamson, Wachter and Harris (1975) suggest promotion incentives within the firm as a substitute to morale-damaging monitoring, where promotion is based on objectively measurable

Effects of fluctuations in exchange rates, Effects of Fluctuations in Excha...

Effects of Fluctuations in Exchange Rates When a country's currency depreciates, exporting firms may have competitive advantage but businesses which rely on imports for raw ma

Shifts in demand curve, Shifts in demand curve Shifts in the demand cu...

Shifts in demand curve Shifts in the demand curve are brought about by the changes in factors like taste, prices of other related commodities, income etc other than the price

"Principal Agent Problem", For this assignment, write at least two pages do...

For this assignment, write at least two pages double spaced about how the principal agent problem applies to: 1. CEO''s, and their relationship with the firm, it''s employees, and

Write Your Message!

Captcha
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