What happens to the number of workers hired

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Solve for profit maximizing number of workers that would be hired given the following information. Then solve for the level of profits. Y= 30L- L2, P= 50, W= 400, FC= 1600

- Consider if the wage was to increase. All else being equal, what happens to the number of workers hired? What happens to the profits? Explain your answers using the equilibrium condition and justify with math.

- Consider if the price was to increase. All else being equal, what happens to the number of workers hired? What happens to the profits? Explain your answers using the equilibrium condition and justify with math.

- Consider if the fixed costs were to increase. All else being equal, what happens to the number of workers hired? What happens to the profits? Explain your answers using the equilibrium condition and justify with math.

Reference no: EM133081261

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