Need help, please show work. Answer options for first blank (More labor, or less labor), options for the second are (more capital, or the same capital).
Homework Answers
In order to maximize profit, a perfectly competitive firm hires
labor up to that point at which marginal revenue product of labor
equals the wage rate.
Marginal revenue product of labor = marginal product of labor * Price of output
Marginal revenue product of labor = 5 * $5 = $25
Wage rate = $20 per hour
Since, marginal revenue product of labor is greater than the wage rate, firm should hire more labor.
In order to maximize profit, a perfectly competitive firm hire capital up to that point at which marginal revenue product of capital equals the wage rate.
Marginal revenue product of capital = marginal product of capital * Price of output
Marginal revenue product of capital = 40 * $5 = $200
Rental price of capital = $120 per hour
Since, marginal revenue product of capital is greater than the rental price of capital, firm should hire more capital.
Thus,
To maximize profit, the manager should hire more labor and more capital.
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Need help, please show work. Answer options for first blank
(More labor, or less labor), options...
Need help, please show work Answer options for the first blank are (decreases or remains unchanged),...
Need help, please show work
Answer options for the first blank are (decreases or remains
unchanged), options for the second blank are (increases or
decreases).
3. Assume immigration increases the labor force in an economy with a Cobb-Douglas production function. Please complete the following statement. As a result, the real wage and the rental price of capital
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A firm hires labor in a perfectly competitive labor market. Its current profit-maximizing hourly output is...
A firm hires labor in a perfectly competitive labor market. Its current profit-maximizing hourly output is 100 units, which the firm sells at a price of $5 per unit. The Marginal Physical product (MPP) of the last unit of labor employed is 5 units per hour. The firm pays each worker an hourly wage of $15. a)What Marginal Revenue (MR) does the firm earn from sale of the output produced by the last worker employed? Explain your asnwer b)Does this...
The options for the first fill in the blank are less or more. The options for...
The options for the first fill
in the blank are less or more. The options for the second and 3rd
option are producing the same amount of shrimp and earrning
positive profit,entering the industry, producing more shrimp and
earning profit,exiting the industry,producing the shrimp and
running at a loss, or producing the same amount of shrimp and
running at a loss. The option for the last fill in the blank are
shrimp populations grow large enough to support more firms,...
Blank 3 options: greater / less Blank 5 options: greater / less Blank 6 options: total...
Blank 3 options: greater /
less
Blank 5 options: greater / less
Blank 6 options: total revenue + profit / marginal cost + total
revenu / total cost + total revenue / total cost + marginal revenue
/total cost + profit / marginal cost + marginal revenue
Blank 7 options: TC = TR / MC = TR / P = MC / Profit = MR - MC /
Profit = TR-TC
1. Profit maximization using total cost and total revenue...
According to Chapter 3 (Classical Model), a profit-maximizing firm will hire labor up to the point...
According to Chapter 3 (Classical Model), a profit-maximizing firm will hire labor up to the point where: marginal product of labor equals the marginal product of capital. O marginal revenue equals zero. marginal product of labor equals real wage. the real wage equals the real rental price of capital.
A firm is producing a product using only labor and physical capital. The price of labor...
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In order to maximize its profits, a firm that hires workers in a perfectly competitive labor...
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The manager of a national retailing outlet recently hired an economist to estimate the firm's production...
The manager of a national retailing outlet recently hired an economist to estimate the firm's production function. Based on the economist's report, the manager now knows that the firm's production function is given Q = K^.5 L^.5 and that capital is fixed at 1 unit. a. Calculate the average product of labor when 5 units of labor are utilized. b. Calculate the marginal product of labor when 25 units of labor are utilized. c. Suppose the firm can hire labor...
Consider a competitive firm that produces bots. Labor (L) and capital (K) are the only two...
Consider a competitive firm that produces bots. Labor (L) and capital (K) are the only two inputs of production; each unit of labor is paid the market wage (w), and each unit of capital is rented at the rental price of capital (r). Output (Y) is therefore a function of labor and capital, or Y = f (K, L), and is sold at the market price (P). The goal of this firm is to maximize profit given the price of...
Need help, please show work
Answer options for the first blank are (decreases or remains
unchanged), options for the second blank are (increases or
decreases).
3. Assume immigration increases the labor force in an economy with a Cobb-Douglas production function. Please complete the following statement. As a result, the real wage and the rental price of capital
29. A firm produces in a perfectly competitive market and hires labor in a perfectly competitive labor market. The firm hires four workers, the marginal product of the fourth worker is 4, and the wage rate is $40. The firm produces 100 units of the product, which sell for a price of $10. This firm is a. maximizing profit when it hires four workers. b. not maximizing profit and should hire more workers to increase profit. c. not maximizing profit...
The options for the first fill
in the blank are less or more. The options for the second and 3rd
option are producing the same amount of shrimp and earrning
positive profit,entering the industry, producing more shrimp and
earning profit,exiting the industry,producing the shrimp and
running at a loss, or producing the same amount of shrimp and
running at a loss. The option for the last fill in the blank are
shrimp populations grow large enough to support more firms,...
Blank 3 options: greater /
less
Blank 5 options: greater / less
Blank 6 options: total revenue + profit / marginal cost + total
revenu / total cost + total revenue / total cost + marginal revenue
/total cost + profit / marginal cost + marginal revenue
Blank 7 options: TC = TR / MC = TR / P = MC / Profit = MR - MC /
Profit = TR-TC
1. Profit maximization using total cost and total revenue...
According to Chapter 3 (Classical Model), a profit-maximizing firm will hire labor up to the point where: marginal product of labor equals the marginal product of capital. O marginal revenue equals zero. marginal product of labor equals real wage. the real wage equals the real rental price of capital.
Consider a competitive firm that produces bots. Labor (L) and capital (K) are the only two inputs of production; each unit of labor is paid the market wage (w), and each unit of capital is rented at the rental price of capital (r). Output (Y) is therefore a function of labor and capital, or Y = f (K, L), and is sold at the market price (P). The goal of this firm is to maximize profit given the price of...
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