Question
1. the production function is Cobb-Douglas requiring only labor input, i.e., Y =zNa,and 2. consumer get disutility from working, and the utility function is given
1. the production function is Cobb-Douglas requiring only labor input, i.e., Y =zNa,and
2. consumer get "disutility" from working, and the utility function is given by U (C, N ) = ln C bN , where b is a parameter.
a. what is the the equilibrium wage as a function of labor demand N?
b. firm's profit = z must be
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Principles of Microeconomics
Authors: N. Gregory Mankiw
8th edition
1305971493, 978-1305971493
