Describe the firms short run labor demand problem

Reference no: EM13209606

The firm operates in perfectly competitive market and product markets. The going price of capital (r) is $1,000 per machine per week. Moreover, the firm sells its output at the going price (p) of $1 per widget. Consider the firm's short run labor demand problem.

If the current stock of capital is fixed at 250 units, how many full-time workers should the firm employ if the weekly salary of each full-time worker (w) is $400 per week? Compute the firm's level of output and profits per week in this short-run equilibrium.

Reference no: EM13209606

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