Page 1 of 1
Suppose the hourly wage is $2 and the price of each unit of capital is $5. The price of output is constant at $20 per un
Posted: Mon Apr 25, 2022 8:14 am
by answerhappygod
- Suppose The Hourly Wage Is 2 And The Price Of Each Unit Of Capital Is 5 The Price Of Output Is Constant At 20 Per Un 1 (50.73 KiB) Viewed 32 times
Suppose the hourly wage is $2 and the price of each unit of capital is $5. The price of output is constant at $20 per unit. The production function is: 1K , ), f(E, K) = 2 E where K is the capital stock and E is the level of employment. If the current capital stock is fixed at 400 units: (a) How much labor should the firm employ in the short run? (b) How much profit will the firm earn?