Please don't switch the subject to Advanced Math. For some reason whenever the subject is switched to those two. I don't receive any help it is a bug. please help me thank you. 2.Suppose the hourly wage is $25, the price of each unit of capital is$50, and the price of output is $100 per unit. Assume that the firm cannot affectany of these prices. The production function of the firm is Q(E, K) = VE × K.If the current capital stock is fixed at 100 units, what is the MarginalProduct of Labor?а.b. How many hours of labor should the firm hire in the short run?c. Setthe profit function. How much profit will the firm earn if the rentaldncosts of capital are $20perunit?

Given information: Q = (EK)0.5 Wage rate (w) = $25 Cost of capital (r) = $50 Price of output (P) =…

Suppose the hourly wage is $25, the price of each unit of capital i $50, and the price of output is $100 per unit. Assume that the firm cannot a ny of these prices. The production function of the firm is Q(E, K) = √E × a. If the current capital stock is fixed at 100 units, what is the Marginal Product of Labor?

Suppose the hourly wage is $25, the price of each unit of capital i $50, and the price of output is $100 per unit. Assume that the firm cannot a ny of these prices. The production function of the firm is Q(E, K) = √E × a. If the current capital stock is fixed at 100 units, what is the Marginal Product of Labor?

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter11: Profit Maximization

Section: Chapter Questions

Problem 11.9P

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