Question
Acme is the sole supplier of security systems in the product market and the sole employer of locksmiths in the labor market. The demand curve
Acme is the sole supplier of security systems in the product market and the sole employer of locksmiths in the labor market. The demand curve for security systems is given byP= 105 1Q, whereQis the number of systems installed per week. The short-run production function for security systems is given byQ= 2L, whereLis the number of full-time locksmiths employed per week. The supply curve for locksmiths is given byW= 10 + 1L, where W is the weekly wage for each locksmith. How many locksmiths will Acme hire, and what wage will it pay?
Round your answers to the nearest whole number:
Locksmiths:
Wage: $
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started