Page 1 of 1
23 point problem: 25. A competitive firm receives a price of $3 for each unit of output (Q), and must pay $15 an hour to
Posted: Fri Jul 01, 2022 7:56 am
by answerhappygod
- 23 Point Problem 25 A Competitive Firm Receives A Price Of 3 For Each Unit Of Output Q And Must Pay 15 An Hour To 1 (50.53 KiB) Viewed 35 times
23 point problem: 25. A competitive firm receives a price of $3 for each unit of output (Q), and must pay $15 an hour to each worker; workers are the only variable input to production. Complete the following table (where MPL is the marginal product of labor, and TR is total revenue): Workers Q/hour MPL Price Value MPL Wage Rate TR/hour Total Wages Profit 0 0 1 11 20 27 32 35 2 3 4 5 What is the rule a profit-maximizing firm uses to decide how many workers to hire? Therefore, how many workers should the firm hire? How much output will the firm produce per hour? How much total revenue will the firm bring in? If fixed costs are zero, how much profit would the firm earn? Is this firm in a long-run equilibrium? Graph VMPL, labeling everything relevant. What are on the axes? Now graph the wage rate. At what quantity do these lines cross, and what does this tell you?