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Question 3 1 pts Suppose that a firm is producing in the short run with output given by: Q = 50L - 50L? The firm hires labor
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Answer #1

We know, optimality of labor is at a point where VMPL=wage rate

VMPL=Price*MPL and MPL=dQ/dL=50-L

VMPL=10(50-L)

wage rate=50

labor is optimality when VMPL=wage rate

10(50-L)=50

50-L=5

Labor=50-5=45

firm hire 45 labor

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