Consider a fully competitive, profit-maximizing strong facing the forthcoming final result of work duty and prices: MPL = 0.5A(K/L)1/2 W = 40 R = 60 P = 10
a. What is the veritable wage rebuke paid by this strong?
b. If sum constituent resultivity (A) is 50 and the strong is employing 16 units of cardinal (K = 16), what achieve the strong’s amount of work ask-fored (Ld ) be?
c. If the suppositious wage (W) rises from $40 to $200, what achieve the new veritable wage rebuke be? All else similar, what would the strong’s amount of work ask-fored (Ld ) be at that new wage rebuke?
d. Assuming that A = 50 and K = 16, graph the strong’s work ask-for duty (amount of work ask-fored graphed athwart the veritable wage paid for work) for values of the veritable wage betwixt 4 and 20. Be fast to conspire at smallest 3 unconnected points.
e. Now conclude that the strong increases its cardinal tenure to 36 units (K = 36). Graph the strong’s new work ask-for duty for values of the veritable wage betwixt 4 and 20. Again, be fast to conspire at smallest 3 unconnected points.