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(d) A perfectly competitive firm has the following production function: Q=L The price of labor is...
a firm in perfectly competitive market sells all its products Q at constant price p (1)A...
a firm in perfectly competitive market sells all its products
Q at constant price p
(1)A firm in a perfectly competitive market sells all its product (Q) at a constant price (P) of $60. Suppose the total cost function (TC) for this firm is described by the following equation: 2 3 TC(Q) = 128 +690 - 140 + Q (a)Form the profit function and determine the output that maximizes the firm's profit. Evaluate the second order condition to assure that...
A firm produces its product using only labor. Its production function is Q? = 20LminusUpper L...
A firm produces its product using only labor. Its production function is Q? = 20LminusUpper L squared?, where Q is the number of units of output produced and L is the number of labor hours used. The firm purchases labor in a competitive labor market at the going wage rate of w? = ?$11 per hour. The firm sells its output in a competitive market at the market price of P? = ?$2.
A perfectly competitive firm uses a single input (labor) to produce a good according to a...
A perfectly competitive firm uses a single input (labor) to produce a good according to a production function Q(L) = 2/7 , where Lis the amount of labor it uses. The good sells for $180 per unit (price). The input costs $15 per unit (wage). 1. (20 pts) What is the profit-maximizing amount of input (L)? 2. (10 pts) What is the profit-maximizing amount of output (Q)? 3. (10 pts) How much profit does the firm make when it maximizes...
(1)A firm in a perfectly competitive market sells all its product (Q) at a constant price...
(1)A firm in a perfectly competitive market sells all its product (Q) at a constant price (P) of $60. Suppose the total cost function (TC) for this firm is described by the following equation: 2 3 Q TC(Q) = 128 +690-140 (a)Form the profit function and determine the output that maximizes the firm's profit. Evaluate the second order condition to assure that profit is maximized at this level of output. (b)Derive the marginal revenue (MR) and the marginal cost(MC). Graph...
2. A competitive firm must decide on how much labor L to employ in production of...
2. A competitive firm must decide on how much labor L to employ in production of output Y. Suppose that Y = 0 In(L) with probability T, and Y =0,In(L) with probability 1-2, where 0<x<1 and > > 0. Thus, the marginal product of labor is a random variable. Each unit of labor costs w and each unit of output is sold at the market price P. Both wage and output price are known to the firm. The firm has...
the firm faces a constant price (P) of $60 A firm in a perfectly competitive market...
the
firm faces a constant price (P) of $60
A firm in a perfectly competitive market sells all its product (Q) at a constant price (P) of $60. Suppose the total cost function (TC) for this firm is described by the following equation: 2 3 TC(Q) = 128 + 69Q - 140 + Q (a)Form the profit function and determine the output that maximizes the firm's profit. Evaluate the second order condition to assure that profit is maximized at this...
Please solve the above sum (B) Q = 50k E (d) A firm in a perfectly competitive industry has the following long run cost function C(q) q-60q+1500q O) If the firm can sell its output at p Rs. 975, h...
Please solve the above sum
(B) Q = 50k E (d) A firm in a perfectly competitive industry has the following long run cost function C(q) q-60q+1500q O) If the firm can sell its output at p Rs. 975, how much will it produce to maximise profit? (i) Is the output of the firm in (i)compatible with industry equilibrium? (Gii) If the industry is that of constant average cost, derive the equation for the long run supply curve of the...
Competitive Firms - Optimal Labor and Capital 1. A competitive firm has production technology q A...
Competitive Firms - Optimal Labor and Capital
1. A competitive firm has production technology q A K La. lt can sell output at price P and hire capital and labor at competitive factor prices r and w. Write down the firm's profit maximization problem. What are the firm's first- order necessary conditions for a maximum. a. w Suppose now that α-,P-1 and -1. b. What is the firm's optimum capital labor-intensity? Why can't the optimum scale of production q be...
10. Consider the production function: f(KL)=K L. Let wandr denote the price of labor and capital,...
10. Consider the production function: f(KL)=K L. Let wandr denote the price of labor and capital, and let p denote the price of the output good. (a) Find the cost minimizing input bundle and the cost function as a function of w., and q. (b) Find the profit maximizing output level and the profit as a function of w, r, and p. 11. Consider the production function: f(KL)=K+L. Let w and r denote the price of labor and capital, and...
Given a perfectly competitive firm in the input and output markets where: P0= exogenous price, Q...
Given a perfectly competitive firm in the input and output markets where: P0= exogenous price, Q = f(L, K0) where dQ/dL > 0 and d2Q/dL2< 0, the cost function where: C(L, K0) = r0K0+ w0L; r0= exogenous rental rate of capital, K0= exogenous capital stock, and w0= exogenous wage. a)State the firm’s profit function in terms of L. b)Find the F.O.C. that maximizes profit at L*. c)Interpret the F.O.C. d)Find the S.O.C. that maximizes profit at L*. e)Interpret the S.O.C....
a firm in perfectly competitive market sells all its products
Q at constant price p
(1)A firm in a perfectly competitive market sells all its product (Q) at a constant price (P) of $60. Suppose the total cost function (TC) for this firm is described by the following equation: 2 3 TC(Q) = 128 +690 - 140 + Q (a)Form the profit function and determine the output that maximizes the firm's profit. Evaluate the second order condition to assure that...
A perfectly competitive firm uses a single input (labor) to produce a good according to a production function Q(L) = 2/7 , where Lis the amount of labor it uses. The good sells for $180 per unit (price). The input costs $15 per unit (wage). 1. (20 pts) What is the profit-maximizing amount of input (L)? 2. (10 pts) What is the profit-maximizing amount of output (Q)? 3. (10 pts) How much profit does the firm make when it maximizes...
(1)A firm in a perfectly competitive market sells all its product (Q) at a constant price (P) of $60. Suppose the total cost function (TC) for this firm is described by the following equation: 2 3 Q TC(Q) = 128 +690-140 (a)Form the profit function and determine the output that maximizes the firm's profit. Evaluate the second order condition to assure that profit is maximized at this level of output. (b)Derive the marginal revenue (MR) and the marginal cost(MC). Graph...
2. A competitive firm must decide on how much labor L to employ in production of output Y. Suppose that Y = 0 In(L) with probability T, and Y =0,In(L) with probability 1-2, where 0<x<1 and > > 0. Thus, the marginal product of labor is a random variable. Each unit of labor costs w and each unit of output is sold at the market price P. Both wage and output price are known to the firm. The firm has...
the
firm faces a constant price (P) of $60
A firm in a perfectly competitive market sells all its product (Q) at a constant price (P) of $60. Suppose the total cost function (TC) for this firm is described by the following equation: 2 3 TC(Q) = 128 + 69Q - 140 + Q (a)Form the profit function and determine the output that maximizes the firm's profit. Evaluate the second order condition to assure that profit is maximized at this...
Please solve the above sum
(B) Q = 50k E (d) A firm in a perfectly competitive industry has the following long run cost function C(q) q-60q+1500q O) If the firm can sell its output at p Rs. 975, how much will it produce to maximise profit? (i) Is the output of the firm in (i)compatible with industry equilibrium? (Gii) If the industry is that of constant average cost, derive the equation for the long run supply curve of the...
Competitive Firms - Optimal Labor and Capital
1. A competitive firm has production technology q A K La. lt can sell output at price P and hire capital and labor at competitive factor prices r and w. Write down the firm's profit maximization problem. What are the firm's first- order necessary conditions for a maximum. a. w Suppose now that α-,P-1 and -1. b. What is the firm's optimum capital labor-intensity? Why can't the optimum scale of production q be...
10. Consider the production function: f(KL)=K L. Let wandr denote the price of labor and capital, and let p denote the price of the output good. (a) Find the cost minimizing input bundle and the cost function as a function of w., and q. (b) Find the profit maximizing output level and the profit as a function of w, r, and p. 11. Consider the production function: f(KL)=K+L. Let w and r denote the price of labor and capital, and...
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