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Matchstick corporation competes in a competitive market where output price is $2.00. The production function for Matchstick is Q = 9 K2/3 L1/3 where K
Matchstick corporation competes in a competitive market where output price is $2.00. The production function for Matchstick is Q = 9 K2/3 L1/3 where K is capital and L is labor. In the short run, Matchstick is using 8 units of capital. If Matchstick is employing 27 units of labor, then what wage is Matchstick paying its workers if the firm is maximizing profit?
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