Suppose General Motors demands labor according to the labor demand function
Suppose General Motors demands labor according to the labor demand function
4. Suppose the production function is given by (a) For a given set of prices w and v, find the conditional demands for capital 1 labor. Also compute the cost function and (b) Compute the long run profit maximization quantity and the resulting profits (c) Solve for the unconditional demands for capital and labor (d) Show that the quantity produced and the profits from the unconditional demands are the same as the ones you got in part b
4. Suppose...
Consider a labor demand function given by Nd. According to
standard classical, what are the returns to scale?
). According to standard Csnsider a labor demand function given by Nd = ao - 91 classical what are the returns to scale? A. Constant returns to scale B. Diminishing returns to scale C. Increasing returns to scale D. Answers A and B are both possible
a. Suppose the general demand function for cars is Qd= f(P, M, Pas, Pe, N) such that M average income of $30,000; Pas= $2.75 per gallon of gas; Pe= S20,000 expected future pricc; and N = 700 consumers in the market. Suppose the general supply function is Qs = f(P, Pı, Pr, T, Pe, F) such that Pi of average wages is $15.15, P,= $35,000 the average cost of SUVS, T= 100 the average level of technology, and F =...
2. Suppose one firm's labor demand function is: D(u) =-2w + 50; (a) if this firm hires in a competitive market with the marginal expense ME- 10, then what is the employment level for this firm? (b) if there are 100 firms that are exactly the same like this one hiring labor, what is the market labor demand function? Further, assume the market sup- ply function is S(w) -300w, then what is the equilibrium market wage and employment level?
2. Labor supply function: N = 1,000 + 12 (W/P) Labor demand function: N = 2,000 – 8 (W/P) Production function: ? = 100√? According equations above, find the equilibrium level of employment (N*), real wage (W/P)*, and the equilibrium level of output (Y*)for the economy.
Suppose that blueberries are produced using land and labor according to the following production function: where Q is the number of tons of blueberries harvested, L1 is the number of acres of blueberry fields, and L2 is the number of labor-hours hired. The marginal product of land, MPt is The marginal product of labor, MP2. is (Carefully enter your response as an algebraic expression, using the proper notation in the proper format.)
Problem #3: Long-Run Labor Demand and Factor Substitutability Suppose there are two inputs in the production function, labor (L) and capital (K), which can be combined to produce Y units of output according to the following production function: 7. Suppose the firm can choose whatever combination of capital (K) and labor (L) it wants to produce 600 units. Suppose the price of capital is S1,000 per machine per week. What combination of inputs (K and L) will the firm use...
Suppose the Three Stooges have different demands for doughnuts. Moe’s demand is given by Q = 15 – 3P; Larry’s demand is given by Q = 9–P; Curly’s demand is given by Q = 6 – 3P. Derive the market demand curve for doughnuts algebraically. Graph the market demand curve for doughnuts. Pay special attention to any kinks in the market demand! Label price and quantity at these points.
Consider the following demand equation for good a. Good a demands is a function of income (Y) and prices of good b and c. QDa(p,Y,pb,pc) = 12 − 3pa + 5Y −3pb +4pc. Pa = 2 Y=500 Pb = 3 Pc = 5 a. Calculate elasticity of demand. Does it respect law of demand? is it elastic or inelastic? Why? b. Calculate elasticity of income. Is it inferior or nomal good? Why? c. Calculate cross-price elasticities with good b. Is...
Suppose, r= 0.10. Should General Motors spend $150 million to build a factory that will yield $300 million in 15 years? (5 points) 3.