Question
4. Suppose the production function of the firm is () = 8 The price of the product is fixed no matter how many units are
4. Suppose the production function of the firm is () = 8 The price of the product is fixed no matter how many units are produced/sold.
a. If the cost of the input (L) is $20 (w = 20) and the firm decides to hire 16 units of labor, what is the price of the output the firm is producing and what are the firm's profits?
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Principles of economics
Authors: N. Gregory Mankiw
6th Edition
978-0538453059, 9781435462120, 538453052, 1435462122, 978-0538453042
