Profit maximization in short-runa jeans manufacturer hires

Assignment Help Microeconomics

Reference no: EM13375921

Profit maximization in short-run

A jeans manufacturer hires workers to sew jeans in its factory and derives the following daily yields of total product, or jeans output (in pairs):

Factory Workers Total Product (pairs) Marginal Product (pairs) Average Product (pairs)

(a) Does this production function exhibit increasing, decreasing, constant returns, or some combinations of the three?

(b) Assuming the price of jeans is $30 per pair and each worker is paid $90 per day, if the jeans manufacturer acts to maximize profit, how many total pairs of jeans will be produced? _________ How many workers will be employed? __________.

What will the jeans manufacturerís total profit be at this output level? _________.

Why? (State the key conditions used in your analysis.

(c) Now assume that each workerís wage drops to $30 per day. What is the new profit maximizing output level? ________. How many workers are hired at this level?

Reference no: EM13375921

Questions Cloud

Question 1 what are the highest and lowest payments from : question 1 what are the highest and lowest payments from the writer that the beekeeper-farmer team will accept for the

Good aliens corporation we make good product we have good : good aliens corporation we make good product we have good machines it is all good good aliens corporations a famous

Cost curvessuppose a firm has a total cost functiontc 23q3 : cost curvessuppose a firm has a total cost functiontc 23q3 -q2 30qa derive the mathematical expressions for the mcatc

Production in the long-runsuppose the production function : production in the long-runsuppose the production function of a typical producer is given as where l is labor and k is

Profit maximization in short-runa jeans manufacturer hires : profit maximization in short-runa jeans manufacturer hires workers to sew jeans in its factory and derives the

Instructions unless otherwise stated all true or false : instructions unless otherwise stated all true or false questions require graphical illustration. properly drawn graphs

You were appointed to manage the production facility of : you were appointed to manage the production facility of your new factory in saint john. a think tank estimated the

1 for each of the following two parts you must justify your : 1. for each of the following two parts you must justify your answer. no explanation no credit.nbsp partially correct

In 1989 the detroit free pressand detroit daily newsthe : in 1989 the detroit free pressand detroit daily newsthe only daily newspapers in the city obtained permission to merge

User Account

All Pages