O For this question only, X = C+B and Y = A-4. Musai Tech is a watch manufacturer operating in a perfectly competitive i

[answerhappygod]

O For This Question Only X C B And Y A 4 Musai Tech Is A Watch Manufacturer Operating In A Perfectly Competitive I 1 (267.91 KiB) Viewed 8 times

O For this question only, X = C+B and Y = A-4. Musai Tech is a watch manufacturer operating in a perfectly competitive industry and its production function is given by q= √(K*L), where q is the output of laptops per week and L is labor hours per week. In the short run, K is fixed at X. i) If capital rents for $Y and wages are $5 per hour, how many laptops will the firm produce at a price of SY per watch and how many labor hours will be hired per [3 marks] week? ii) Suppose that, during recessions, the price of watches falls by $3.50. With this price, how much would the firm choose to produce, and how many labor hours would be [2 marks] hired?