Consider a firm which produces q units of output using L units of labour and whose market demand for labour is given by
Posted: Wed Mar 09, 2022 8:35 am
Consider a firm which produces q units of output using L units
of labour and whose market demand for labour is given by L* = 57-
w/(14p), if w/(14p)<57 and L*=0, otherwise where p denotes the
price of output and w denotes the price of labour. What is the
change in the profit of the firm if the price of labour changes
from w= 1 to w = 4 assuming the price of output is p=57？
of labour and whose market demand for labour is given by L* = 57-
w/(14p), if w/(14p)<57 and L*=0, otherwise where p denotes the
price of output and w denotes the price of labour. What is the
change in the profit of the firm if the price of labour changes
from w= 1 to w = 4 assuming the price of output is p=57？