Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Slytherthings, Inc. is a perfectly competitive firm producing lockets. It pays [$60] per unit for the [10] units of capital it uses, and the marginal

Slytherthings, Inc. is a perfectly competitive firm producing lockets. It pays \[\$60\] per unit for the \[10\] units of capital it uses, and the marginal product of the \[10^{\text{th}}\] unit of capital is \[420\] lockets. The firm can't change its use of capital in the short run, but it can change its use of labor, and it can hire as much labor as it wants at a wage of \[\$30\]. The firm's production function is given in the table shown here: Units of labor Total output \[0\] \[0\] \[1\] \[750\] \[2\] \[1420\] \[3\] \[1920\] \[4\] \[2270\] \[5\] \[2480\] \[6\] \[2580\] \[7\] \[2540\] How many units of labor should the firm hire to minimize costs and maximize profits? Choose 1 answer: Choose 1 answer: (Choice A) \[3\] A \[3\] (Choice B) \[6\] B \[6\] (Choice C) \[2\] C \[2\] (Choice D) \[5\] D \[5\] (Choice E) \[4\] E \[4\]

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Rise And Fall Of Neoliberal Capitalism

Authors: David M Kotz

1st Edition

0674725654, 9780674725652

More Books

Students also viewed these Economics questions

Question

Describe five general characteristics of the Renaissance period.

Answered: 1 week ago