Wage is matchstick paying its workers

Assignment Help Business Economics
Reference no: EM132491845

Matchstick corporation competes in a competitive market where output price is $2.00. The production function for Matchstick is Q = 9 K2/3 L1/3 where K is capital and L is labor. In the short run, Matchstick is using 8 units of capital. If Matchstick is employing 27 units of labor, then what wage is Matchstick paying its workers if the firm is maximizing profit?

Reference no: EM132491845

Questions Cloud

Risks associated with the changing prices of resources : What examples do you have of the risks associated with the changing prices of resources? What actions could a firm take to mitigate those risks?
Government regulations and policies : What examples do you have of the risks businesses face that are associated with government regulations and policies?
How error measures can help to optimize moving averages : xplain how error measures can help to optimize moving averages, weighted moving averages, and exponential smoothing methods
Discuss using the hechscher-ohlin model : Countries that are willing to tolerate an unusually high quantity of labour relative to their supplies of other factors would tend to export "labour -intensive"
Wage is matchstick paying its workers : If Matchstick is employing 27 units of labor, then what wage is Matchstick paying its workers if the firm is maximizing profit?
Development advocated by amartya sen : What is the approach to development advocated by Amartya Sen?
Change in the price of nonlabor resources : Assume there is no productivity increase and no change in the price of nonlabor resources.
Calculate hhi for halloumi cheese in tr : Assume in there are 20 Halloumi Cheese producers in TR. Assume each of first 15 of them have 2% share while the remaining 5 have 14% share.
Recommend to maximize our cash flow : Let me know what price you would recommend to maximize our cash flow, I am hoping there is room to bring our price point more in line with the Sequoia.

Reviews

Write a Review

Business Economics Questions & Answers

  General agreement on tariffs and trade

The international organization that replaced the General Agreement on Tariffs and Trade (GATT) is the

  Respect to ethical practices and social responsibility

"When in Rome, do as the Romans do". Would this be a suitable guideline for MNC's (multinational corporations) doing business in developing countries with respect to ethical practices and social responsibility? Discuss.

  What is rent seeking behavior

What is rent seeking behavior? How does it explain why government has grown in recent years and how it explain why it is difficult to change tax or spending policies in the United States?

  Calculate its minimum efficient scale of production

A firm produces both crayons and pencils in constant proportions (1/3 and 2/3 respectively). Its costs are C(q1;q2)=1000+10q1+5q2+9q1q2, where q1 is the output of crayons and q2 the output of pencils. Calculate its minimum efficient scale (MES) of pr..

  Fixed exchange rate and floating exchange rate

What are pros and cons of having a fixed exchange rate and floating exchange rate? Please provide the complete solution of this problem.

  Credit ratings of leading banks due to large debt write-offs

The economy of country Rumblen was hit by a banking crisis which led to a recession. Jason Wallace, a real estate agent, says that the economy will recover soon because the government is taking various measures to counter the recession. Some banks in..

  Unemployment rate in the united states

a. In April 2011, the unemployment rate in the United States increased from 8.8% to 9%.  This means the economy is not yet recovering from the Great Recession.

  Determine its optimal average cash balance

The Duckett Group is trying to determine its optimal average cash balance. The firm has determined that it will need $8,100,000 net new cash during the coming year. According to the Baumol model, what should be Duckett’s average cash balance?

  In the specific factors model predict

In the specific factors model predict who seeks protection against trade and who does not. Explain your answer. How does your answer change in the Hecksher-Ohlin model? Explain

  Historical economic development in the bahamas

Discuss which model that best describes the historical economic development in The Bahamas. Which approach would you recommend to best ensure sustainable development in The Bahamas?

  Accelerator influence both aggregate demand and supply

How does the Financial Accelerator influence both aggregate demand and supply? How is Bernanke & Gertler’s analysis pro-cyclical?Consider the following functions: Qd = -4P + 190 and Qs = P - 10. Further assume that the government has institutes a pri..

  The federal reserves target rate for the federal funds rate

The Federal Reserve’s target rate for the federal funds rate

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd