Couldn't post the picture so I hope this works, answer as soon as possible thank you....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Couldn't post the picture so I hope this works, answer as soon as possible thank you. A wood factory initially produce wood chairs (Q) manually with I units of labour employed and without using any machinery. That is, Q=f(L)= L And per unit price of chair is p and per unit wage is w. 1) Construct a profit function and find the optimal level of labour input (L*) for profit maximization. 2) Suppose this manager tries to figure out how the optimal level of labour demand (L*) would change when w varies. What is your finding? 3) Now the government wants to subsidize the firm's employment to promote national economy with subsidy rate s <w (per employed labour unit). Write the new profit function and find the new optimal level of labour (L**). Date: Nov. 14th, 2021 4) How does your new optimal profit (**) react to a change in the price p? 5) How does the new optimal level of employment (L**) react to a change in the subsidy rate? Couldn't post the picture so I hope this works, answer as soon as possible thank you. A wood factory initially produce wood chairs (Q) manually with I units of labour employed and without using any machinery. That is, Q=f(L)= L And per unit price of chair is p and per unit wage is w. 1) Construct a profit function and find the optimal level of labour input (L*) for profit maximization. 2) Suppose this manager tries to figure out how the optimal level of labour demand (L*) would change when w varies. What is your finding? 3) Now the government wants to subsidize the firm's employment to promote national economy with subsidy rate s <w (per employed labour unit). Write the new profit function and find the new optimal level of labour (L**). Date: Nov. 14th, 2021 4) How does your new optimal profit (**) react to a change in the price p? 5) How does the new optimal level of employment (L**) react to a change in the subsidy rate?
Expert Answer:
Answer rating: 100% (QA)
The production function is Q fL L 2 The per unit price of chair i... View the full answer
Posted Date:
Students also viewed these programming questions
-
For the given case study, do the following: Write Functional Requirement Write Non-functional Requirement Draw use case diagram and write use case description also Identify classes and draw class...
-
Draw the activity diagram and state chart diagram for the given scenario. Home Rent System The owner of the system can add each building and its apartments, enter the name of the tenant and the...
-
in 8085 simulator program and screenshot results from program: a. Write Assembly Language Program to evaluate the expression 3*3*3 b. Write Assembly Language Program to evaluate the expression 20/2...
-
1. Consider a household that has $300 to spend on back-to- school shoes. They visit one of the discount shoe stores where shoes are buy one pair for $50, get the second half off. a. Draw the budget...
-
A new out-of-state client, Robert Ball, has asked you to prepare a Form 709 for a large gift he made in 2015. When you request copies of any prior gift tax returns he may have filed, he responds,...
-
One of your coworkers says, Mission statements are nice, but they really dont change things down here where the work gets done. How would you reply?
-
When placed between the poles of a horseshoe magnet as shown in Figure 28.12, does a rectangular current loop experience a torque? If so, in which direction does the loop rotate? Data from Figure...
-
1. A stock sells at $15 per share. (a) What is the EPS for the company if it has a P/E ratio of 20? (b) If the companys dividend yield is 3 percent, what is its dividend per share? (c) What is the...
-
The story is rich dad poor dad chapter 3 1) What is rule #1? 2) What is an asset? Give 3 examples. 3) What is the difference between an asset and a liability? 4) According to "Rich Dad", when can a...
-
Given the bill of materials for the printer cartridge (A) shown below, a gross requirement to build 200 units of A, on-hand inventory levels for each item as shown in the table below, and assuming...
-
*Speed & uncertainty in position A particle of mass 1.00 x 10 kg moves with speed 5.00 m/sec. If its speed is uncertain by 0.5 percent (ie. Av/v = 0.5/100), what is the minimum uncertainty in its...
-
In a transaction qualifying under Section 351, Mark transfers the following assets to B&O Corporation in exchange for all of its stock. Basis to Transferor FMV Equipment $450,000 $270,000 Land...
-
Stock inaccuracy happens when the stocks are recorded in the system, but they are not physically present or not enough to fulfil the customers' orders. Discuss the causes of this
-
Consider the following recursive function foo which takes as input a positive integer n: def foo ( n ) : if n = = 1 : return 1 if n % 2 = = 0 : return n + foo ( n / / 2 ) return foo ( 3 * n + 1 ) Can...
-
Consider the following queries: 1 . SELECT * FROM invoice WHERE customer _ id IN ( SELECT customer _ id FROM customer WHERE first _ name like ' J % ' ) ; 2 . SELECT invoice. * FROM invoice INNER JOIN...
-
Social security faces a major funding challenge. The OASITF, which provides retirement benefits, will be almost out of funds by 2033, and the DI Trust will be out of funds in 2016. In such cases,...
-
Prepare journal entries to record the following transactions: Dec. 1 - Mr. John Miller deposited $100,000 as initial investment to his newly open business, Miller Repair Shop Dec3 John bought...
-
Explain how two samples can have the same mean but different standard deviations. Draw a bar graph that shows the two samples, their means an standard deviations as error bars. T S
-
Determine the equivalent resistance \(R_{\text {eq }}\) for the circuit shown in Figure 6.8. FIGURE 6.8 Problem 1. W R1 ev
-
Determine the equivalent resistance \(R_{\text {eq }}\) for the circuit shown in Figure 6.9. FIGURE 6.9 Problem 2. +O V www R ww R3
-
Determine the equivalent resistance \(R_{\text {eq }}\) for the circuit shown in Figure 6.10. Assume that all resistors have the same resistance of \(R\). FIGURE 6.10 Problem 3. W R . WWW R5 w R2 R3...
Study smarter with the SolutionInn App