problem 1Assume you are the manager of a firm producing a certain product X. The following schedule shows the total production per week of product X. Additionally, assume each unit of product X sells for 15 per unit workers can be hired in a competitive labor market for $150 per week, and each unit of capital costs $100 per week.
Problem 1 Assume You Are The Manager Of A Firm Producing A Certain Product X The Following Schedule Shows The Total Pro 1 (241.06 KiB) Viewed 8 times
a. Using the profit-maximization input usage principle, determine how many workers should be hired? Clearly explain your answer!
b. What will be your firm's maximum profit? Clearly explain your answer!
c.. Suppose that workers unionized and were able to get a new weekly wage of $200. How will the new weekly wage affect the number of workers hired? How will the new weekly wage affects the number of workers hired? How ill the new weekly wage affect the firm's profit?
Labor (L) 0 1 3 13 14 15 2 L 8 56 9 10 11 12 Capital (K) 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 Quantity (Q) 0 10 25 43 63 88 118 15:3 193 226 251 273 293 308 316 324
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