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

2 questions that im stuck on!!!

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

## Answer this Question

## Related Questions

- econ - Suppose a firm produces output using the technology Q=K1/3 L2/3 Find a. ...
- Mathematics in Economy - A firm produces two different kinds A and B of a ...
- Economics Internation trade - Please help on the following question 2. (...
- Economics International Trade - Heckscher- Ohlin Model 1. Suppose that Home ...
- Math Calculus - Economists use production functions to describe how output of a ...
- Math (UBC) - Economists use production functions to describe how output of a ...
- Economics - A monopoly produces widgets at a marginal cost of $8 per unit and ...
- microeconomics - Suppose a firm produces output using the technology Q=K1/3 L2/3...
- economics - Suppose a firm produces output using the technology Q=K1/3 L2/3 Find...
- Economics - Consider the production function Q = 20K 1/2 L 1/2. The firm ...