1.6. Suppose that a firms production function is given by Q = 12L L2, for L...
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1.6. Suppose that a firm’s production function is given by Q = 12L − L2, for L = 0 to 6, where L is labor input per day and Q is output per day. Derive and draw the firm’s demand for labor curve if the firm’s output sells for $10 in a competitive market. How many workers will the firm hire when the wage rate is $30 per day? $60 per day? (Hint: The marginal product of labor is 12 − 2L.)
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