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Question

Firm uses 15 units of k, price of k=400 per unit

price of good=100: wage per worker =40,000

L Q

1 800

2 1900

3 2700

4 3350

5 3775

6 4100

A. does this represents the SR OR LR? Explain

b. what is the optimal number of workers this firm willhire?

c. what are profits at this number of workers?

d. is the underlying total cost curve for this firm quadratic orcubic? explain?

Solution

x. It xxxxxxxxxx the xxxxx xxx xxxxxxx the xxxxxxx is xxx xxxxxxxxx xxxx, it xx fixed xx xx xxxxx. So xx cann't xx xxxxx xxxxx in xxxx run xxx xxxxxx xxx change.

B. xxxxxxx number xx xxxxxxx xxxx be xxxxxx =P*MPL

40,000 = xxx*xxxxxx = 400

So , L = xx. xxxxxxx = xxxxx Revenue - xxxxx xxxx = x*x - x*x - x*x= 100*3775 - 40,000*5 - xxx*xx= xxx,xxxx. As xxx = xxx/xx xx xxxx decreasing xxxy and xx xxx xxxxxxxxxxx sign xx curvature , xxxx xx is x quadratic xxxxxxxx.xx yxx xxx'x understand xxyxxxxx , xxxx xxxxxxx , I xxxx revertback xx xxx xxxx. :)

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