Monday

April 21, 2014

April 21, 2014

Posted by **tofu** on Saturday, March 10, 2007 at 2:59am.

1. Suppose a firm has a production function Q = 3(squareroot)N, where N is labour.

Suppose the wage is 3, and the price of the output 4.

(a) Write the Firm profits

(b) Calculate the firm optimal labour choice when the wage is 3.

2. 2. Suppose a fim has a production function Q = 3(squareroot)N, where N is labour.

Suppose the price of the output 4. Derive the firm labour demand

a) I suggest you create a table. Columns are N, Q, Total Revenue, and Profit. Rows are N=1,N=2,...N=5. That is, calculate Q, Total Revenue, and profit when wage=3*N and when N=1, when N=2 and so on. Where is profit maximized?

b) use the table you created in a) How much would the firm pay per worker if it only wanted 1 worker, if it wanted 2 workers, ... if it wanted 5 workers.

fsadf

**Related Questions**

microeconomics - TRUE OR FALSE: 9. Assume that the Minimum Wage has increased to...

Economics - B. Suppose there are two goods, Cloth and Food, and two factors of ...

Economics - Consider the production function Q = 20K 1/2 L 1/2. The firm ...

macroenomics - Suppose the minimum wage is above the equilibrium wage in the ...

Economics Internation trade - Please help on the following question 2. (...

Micro econ - 1: Suppose John had a utility function of U=X^2/3Y^1/3 . Derive ...

economics question!! - Suppose a firm is both a monopoly and a monopsony. How ...

econ - Suppose a firm produces output using the technology Q=K1/3 L2/3 Find a. ...

Microeconomics - Cant find equations for solving for MP and AP. Suppose firms A ...

Economics International Trade - Heckscher- Ohlin Model 1. Suppose that Home ...