Assume a firm has the following production function: q=f(L,K) = L Ki Additionally, assume that, in...

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Assume a firm has the following production function: q=f(L,K) = L Ki Additionally, assume that, in the short-run, the firm's capital is fixed at K = 1. Suppose the firm can sell each unit of output (q) at a price of p = 24 dollars. If the firm's profit maximizing level of output is q = 2, what must be the wage (w) that the firm must pay each unit of labor they hire in the short-run? w= 2 . dollars Assume a firm has the following production function: q=f(L,K) = L Ki Additionally, assume that, in the short-run, the firm's capital is fixed at K = 1. Suppose the firm can sell each unit of output (q) at a price of p = 24 dollars. If the firm's profit maximizing level of output is q = 2, what must be the wage (w) that the firm must pay each unit of labor they hire in the short-run? w= 2 . dollars

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ANSWER The profit function of the firm is given by pq wL where is profit p is price q is ... View the full answer