What wage will the firm pay, Managerial Economics

Assignment Help:

A firm faces a perfectly elastic demand for its output at a price of $6 per unit of output. The firm, Though, faces an upward-sloped labor supply curve of
         E= 20w-120

Where E is the number of workers hired every hour and w is the hourly wage rate, Therefore, the firm faces an upward-sloped marginal cost of labor curve of

MCe= 6 + -0.1E

Every hour of labor produces five units of output. How many workers should the firm hire every hour to maximize profits? What wage will the firm pay? What are the firm's hourly profits?


Related Discussions:- What wage will the firm pay

Explain the theory of production, Explain the Theory of Production Co...

Explain the Theory of Production Cost and Production analysis is central for the unhampered functioning of the production process and for project planning. Production is an e

What is the theory of the firm, What is the theory of the firm A firm c...

What is the theory of the firm A firm can be considered an amalgamation of people, financial and physical resources and a variety of information. Firms exist as they perform us

Discouting priciple, Using the discounting principle calculate the present ...

Using the discounting principle calculate the present value of an annuity of five years at Rs. 500 payments made at the end of each of the next five years at 10% interest. stion..

Limitations, limitations of managerial ecomomics

limitations of managerial ecomomics

Supplementary reserve, Supplementary Reserve, Requirements/Special Deposit ...

Supplementary Reserve, Requirements/Special Deposit If the Central Bank feels that there is too much money in circulation, it can in addition require commercial banks to mainta

Illustrate fiscal monopoly, Q. Illustrate Fiscal Monopoly? Fiscal Mono...

Q. Illustrate Fiscal Monopoly? Fiscal Monopoly:   To stop exploitation of consumers andemployees, government nationalises many industries and obtains fiscal monopoly power ove

Structure of population and supply of labour, THE STRUCTURE OF POPULATION A...

THE STRUCTURE OF POPULATION AND SUPPLY OF LABOUR The structure (also called age distribution or composition) of population, or the number of people in the different age groups

Write Your Message!

Captcha
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