Question

A firm has the following short run total product curve: TPL = Q = 10.5L +...

A firm has the following short run total product curve:

TPL = Q = 10.5L + 1.5L2 - .0625L3,

where labor, L, is the only variable input and TPL is the total output produced per day. Assume the firm faces a fixed price of $16.00 per unit for its output. Also assume that only whole units of output are possible.

a.If the firm must pay a market-determined wage rate of $60.00 per day for each unit of labor hired, how much labor should it employ?

b.If the firm's daily fixed costs total $1000.00, what will be its total profit per day?
Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
A monopoly firm faces a demand curve given by the following equation: P = $500 -...
A monopoly firm faces a demand curve given by the following equation: P = $500 - 10Q, where Q equals quantity sold per day. It's marginal cost curve is MC = $100 per day. Assume that the firm faces no fixed cost. Provide an explanation of the results. How much will the firm produce? How much will it charge? Can you determine its profit per day? Suppose a tax of $1000 per day is imposed on the firm? How will...
1. A monopoly firm faces a demand curve given by P=70-Q and has a cost curve...
1. A monopoly firm faces a demand curve given by P=70-Q and has a cost curve given by TC=0.7Q^2 a) Specify its output*, price*, and profits*. b) Suppose a specific tax of $16 per unit produced is imposed upon the firm; how does this affect the firm's *output, price, and profits. c) If there is a fixed franchise tax of $160 implemented on the firm, how does this affect the output, price, and profits. d) If there is a corporate...
1. Suppose a short-run production function is described as Q = 2L – (1/800)L^2 where L...
1. Suppose a short-run production function is described as Q = 2L – (1/800)L^2 where L is the number of labors used each hour. The firm’s cost of hiring (additional) labor is $20 per hour, which includes all labor costs. The finished product is sold at a constant price of $40 per unit of Q. a. How many labor units (L) should the firm employ per hour b. Given your answer in a, what is the output (Q) per hour...
1. Suppose a short-run production function is described as Q = 2L – (1/800)L2 where L...
1. Suppose a short-run production function is described as Q = 2L – (1/800)L2 where L is the number of labors used each hour. The firm’s cost of hiring (additional) labor is $20 per hour, which includes all labor costs. The finished product is sold at a constant price of $40 per unit of Q. a. How many labor units (L) should the firm employ per hour: b. Given your answer in a, what is the output (Q) per hour:...
A firm has a daily production function q = 2.5L^1/3K^1/3. Currently, the firm rents 8 pieces...
A firm has a daily production function q = 2.5L^1/3K^1/3. Currently, the firm rents 8 pieces of equipment. The amount of equipment is fixed in the short run. The unit wage rate is $25 while the rental cost of capital is $100. Find the short run production function. Find the number of workers the firm wishes to employ to produce q units (the short run conditional demand for labor). Find the firm’s short run total cost Find the firm’s short...
1.If the total cost function is C(Q) = 15Q2+ 10, what is the marginal cost? 10/Q...
1.If the total cost function is C(Q) = 15Q2+ 10, what is the marginal cost? 10/Q 15Q 15Q+10/Q 30Q None of these. 2.When a firm increased its output by one unit, its AFC decreased. This is an indication that the law of diminishing returns has taken effect. MC < AFC. AVC < AFC. the firm is spreading out its total fixed cost. 3.If the production function is f(L, K) = aL +2aK where a > 0 is a constant, L...
1. Suppose a short-run production function is described as Q = 30L - 0.05L^2 where L...
1. Suppose a short-run production function is described as Q = 30L - 0.05L^2 where L is the number of labors used each hour. a. Derive the equation for Marginal Product of Labor b. Determine how much output will the 200th worker contribute: c. Determine the amount of labor (L) where output (Q) is maximized (known as Lmax): d. If each unit of output (Q) has a marginal revenue (price) of $5 and the marginal cost of labor is $40...
A firm in a perfectly competitive constant cost industry has total costs in the short run...
A firm in a perfectly competitive constant cost industry has total costs in the short run given by: TC = 2q2 + 2q + 72 q ≥ 2 where q is output per day and TC is the total cost per day in dollars. The firm has fixed costs of $54 (already included in the TC equation above). The TC equation generates minimum average costs of $26 (per unit) at q = 6. You are also told that this size...
In the​ short-run, we assume that capital is a fixed input and labor is a variable​...
In the​ short-run, we assume that capital is a fixed input and labor is a variable​ input, so the firm can increase output only by increasing the amount of labor it uses. In the​ short-run, the​ firm's production function is q = f(L, K)​, where q is​ output, L is​ workers, and K is the fixed number of units of capital. A specific equation for the production function is given​ by: q = 8LK + 5L2 − 13L3 or​ ,...
A firm has the following short run total costs, where Q is output and TC is...
A firm has the following short run total costs, where Q is output and TC is total cost: Q TC 0 $ 200 1 210 2 230 3 260 4 300 5 350 6 410 7 480 8 560 9 650 10 750 11 860 What is total fixed cost equal to? What is average total cost at Q = 5? What is average variable cost at Q = 7? What is marginal cost at Q = 9? At Q=9,...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT