Essay
Suppose that the marginal revenue product function for the firm is MRPL = 40 - .75L.Assume that the firm hires labor in a competitive labor market at a wage of W = $10 per hour.Explain why employment of L = 20 is not profit maximizing (show exactly how profit could be increased).What is the profit maximizing level of employment for this firm?
Correct Answer:
Verified
Correct Answer:
Verified
Q2: If a tax is placed on an
Q3: If the hourly wage is $50 and
Q4: Workers will bear less of a payroll
Q5: Declining marginal product of labor<br>A) is needed
Q6: If two inputs are substitutes in production,and
Q7: The firm's labor demand curve in the
Q8: If employers are paid a subsidy of
Q9: Consider a firm using three inputs: unskilled
Q10: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB3580/.jpg" alt=" Consider the short
Q11: The marginal product of labor tells us<br>A)