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l. (3 points) Suppose Firm A produces plastic straws (Q) using workers (N) and machines (K) as inputs. 1 1 Firm A's production function is

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l. (3 points) Suppose Firm A produces plastic straws (Q) using workers (N) and machines (K) as inputs. 1 1 Firm A's production function is such that Q = ZKENE. Assume that the price of a unit of plastic straws is $1 and the number of machines is xed such that K=l. For all of the following sub-questions, assume K=l always holds and the time horizon is in the short run. Note: If your numerical answer does not divide cleanly into an integer, either express it as simplied fractions or round it to the nearest tenth decimal (Simplified actions are preferred but not necessary). a) (I point) Solve for Firm A's labor demand function. For which values of N does the rm operate in the industry and demand labor? b) (I point) Suppose there are 270 identical rms (including Firm A) in the plastic straw industry that are exactly the same as Firm A. Solve for the industry's aggregate labor demand function. e) (I point) Suppose that the aggregate labor supply curve is NS=10w. Compute the equilibrium market wage and market employment level. How many units of workers would an individual rm in this industry employ given the equilibrium market wage

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