Short run profit maximization condition

Reference no: EM1315632

1. Describe (in a sentence or two) the short run profit maximization condition when labour is the only variable input? What will happen to the labour demand if price of the output goes up?

2. What happens to employment in a competitive firm that experiences a technology shock such that at every level of employment its output is 200 units/hour greater than before?

(Hint: Think what will happen to the marginal productivity as a result of the technology shock.... You may want to use Table 4-1 to help you think about this problem.)

Reference no: EM1315632

Questions Cloud

Effectiveness of demand side policy : Discuss the upshot of this policy in terms of a new equilibrium. Is this policy likely to have a negative repercussion on the crime rate? Can you come up with an idea concerning a major drawback of this policy?

Define comparison of borrowing costs based on annual percent : Define Comparison of borrowing costs based on annual percentage yield and the bond has a 20-year life

Developing the flowchart using visual logic : Develop a flowchart by using the Visual Logic for a program which accepts a candy name.

Inventory and cost of goods sold and journal entries : Inventory and cost of goods sold and journal entries - Prepare the sales portion of the entry for this sale on Randy's books. and Prepare the cost of sales portion of the entry for this sale on Randy's books.

Short run profit maximization condition : Describe (in a sentence or two) the short run profit maximization condition when labour is the only variable input?

Determining percentage of employees has dependents : Determine percentage of employees has 5 dependents? Of all employees which have at least one dependent, determine percentage has more than one?

Hypothesis test of two means : Is there a significant difference between the scores between the Republicans and the Democrats?

Income and substitution effect for normal good : Suppose the price of food increases from Px1to Px2. On a clearly labelled graph, illustrate the income and substitution effects of the price change on the consumption of food.

Computation of the current yield on the bond : Computation of the current yield on the bond and yield to maturity and A bond has 10 years until maturity, a coupon rate of 8%. and sells for $1,100.

User Account

All Pages