Suppose the wage rate is $10 per hour and the fixed cost is $20 The production information is as follows Labor (Hour) Output 0 0 1 2 2 4 3 6 4 8 Suppose the market is perfectly competitive, and the market price is $10 a Find out the profit maximizing output level at short run b Specify the amount o...

ShortRun Profit Maximization a Profit Maximizing Output Level In a perfectly competitive market the ...

Suppose the wage rate is $10 per hour and the fixed cost is $20. The production information

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Suppose the wage rate is $10 per hour and the fixed cost is $20. The production information is as follows:

Labor (Hour)	Output
0	0
1	2
2	4
3	6
4	8

Suppose the market is perfectly competitive, and the market price is $10.

a.Find out the profit maximizing output level at short run.

b.Specify the amount of economic profit or loss at the profit maximizing output level in the short run.

c.What will be the price and quantity for the long run equilibrium?

Related Book For answer-question

Microeconomics

ISBN: 978-0132857123

8th edition

Authors: Robert Pindyck, Daniel Rubinfeld

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Posted Date: Mar 03, 2024 03:33 AM

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Suppose the wage rate is $10 per hour and the fixed cost is $20. The production information

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Microeconomics

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