Write down an equation for the firms short-run demand

Reference no: EM13191256

A competitive firm has a production function described as follows. "Weekly output is the square root of the minimum of the number of units of capital and the number of units of labor employed per week." Suppose that in the short run this firm must use 16 units of capital but can vary its amount of labor freely.
a. Write down a formula that describes the marginal product of labor in the short run as a function of the amount of labor used. (Be careful at the boundaries.)
b. If the wage is w = $1 and the price of output is p = $4, how much labor will the firm demand in the short run?
c. What if w = $1 and p = $10?
d. Write down an equation for the firm's short-run demand for labor as a function of w and p.

Reference no: EM13191256

Questions Cloud

State j of heat are necessary to raise the temperature : How many J of heat are necessary to raise the temperature of a 1.05-kg block of iron from 25.0 C to 88.5 C?

Who were forced to pay more for the chemicals : As the spokesperson for the Environmental Protection Agency, how would you explain the economic reasons for these actions to angry customers of this company who were forced to pay more for the chemicals as a result of this government action.

Compute the ph of the solution taking into account : Calculate the pH of the solution, taking into account the activity coefficients for H+ (yH+ = 0.933) and IO3- (yIO3- = 0.928). Assume yHIO3 = 1. (Hint: quadratic)

Compute the amount of work in kilojoules : Calculate the amount of work in kilojoules (kj) needed to move an object that weighs 500 grams through a distance

Write down an equation for the firms short-run demand : A competitive firm has a production function described as follows. "Weekly output is the square root of the minimum of the number of units of capital and the number of units of labor employed per week." Suppose that in the short run this firm must..

Define the system comes to equilibrium : A set of two gas bulbs, with volumes of 500 mL and 300 mL, are connected by a closed stopcock. The 500 mL bulb contains 450 torr of Ne gas, and the 300 mL bulb contains 150 torr of Cl2 gas

State might one do to verify that the global strain-energy : What might one do to verify that the global strain-energy minimum has been identified

Compute the density of the gas in the tank : If the temperature is 22 degrees C, the total pressure in the tank is 3.50 atm, and the density of the gas in the tank is 1.17 g/L, what is the partial pressure of H2?

How many hours a week will he choose to spend raising pigs : Ymir Larson farms near Niffleheim, Minnesota. He works 80 hours a week. He can either grow rutabagas or raise pigs. Every hour that he spends growing rutabagas gives him $2 of income this year. Every hour that he spends raising pigs this year will..

User Account

All Pages