Question: In the big push, let the new technology be given by Q=L/c-F/c where c=0.5. Suppose with the new technology the modern firm can produce the
In the big push, let the new technology be given by Q=L/c-F/c where c=0.5. Suppose with the new technology the modern firm can produce the same output as the traditional firm with 9 workers. Let the total amount of labor be 1000 and the total number of firms be 100. Find the minimum number of units of labor needed for the modern firm to access the technology.
a. 10
b. 4
c. 9
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