See Hint Part 1 (0.5 point) Suppose the lease for cubicles is under a long-term contract and the firm already chose how many cubicles to lease. Suppose specifically that the firm is leasing 2 cubicles. The firm, however, must decide how many employees to hire for its projects. Let P stand for the price of output produced by the firm and let stand for the cost per employee. Which of the following functions represents the firm's demand function for employees? Choose one: 0.92 A. x = 01 PX-5.00 O B. x1 = ( 013-5.00) 0.92 O C. x1 = (2x0.92)5.00 -5.00 O D. x = (m, 20.92) E x1 = ( Px0,92 )-5.00 @ See page 372 10 Question (1 point) Consider a firm that uses two inputs, X1 and x2. The firm's production function is y = x445x225. xi represents the number of employees working per week, and x2 represents the number of cubicles the firm leases from a shared-space office complex. The firm operates in competitive markets for its product and for the production process inputs (i.e., labor and office space). O See Hint Part 2 (0.5 point) Let the price of the good be P = 20, and the cost of employees be 01 = 16 per employee. Then, if the firm is maximizing profits, it will use 10 employees. (Give your answer to two decimal places. Because the firm could hire some employees for just a few hours, the number of employees does not need to be a whole number.) See Hint Part 1 (0.5 point) Suppose the lease for cubicles is under a long-term contract and the firm already chose how many cubicles to lease. Suppose specifically that the firm is leasing 2 cubicles. The firm, however, must decide how many employees to hire for its projects. Let P stand for the price of output produced by the firm and let stand for the cost per employee. Which of the following functions represents the firm's demand function for employees? Choose one: 0.92 A. x = 01 PX-5.00 O B. x1 = ( 013-5.00) 0.92 O C. x1 = (2x0.92)5.00 -5.00 O D. x = (m, 20.92) E x1 = ( Px0,92 )-5.00 @ See page 372 10 Question (1 point) Consider a firm that uses two inputs, X1 and x2. The firm's production function is y = x445x225. xi represents the number of employees working per week, and x2 represents the number of cubicles the firm leases from a shared-space office complex. The firm operates in competitive markets for its product and for the production process inputs (i.e., labor and office space). O See Hint Part 2 (0.5 point) Let the price of the good be P = 20, and the cost of employees be 01 = 16 per employee. Then, if the firm is maximizing profits, it will use 10 employees. (Give your answer to two decimal places. Because the firm could hire some employees for just a few hours, the number of employees does not need to be a whole number.)
