
Labor Economics 5th Edition by George Borjas
النسخة 5الرقم المعياري الدولي: 978-0073511368
Labor Economics 5th Edition by George Borjas
النسخة 5الرقم المعياري الدولي: 978-0073511368 تمرين 18
The Key West Parrot Shop has a monopoly on the sale of parrot souvenir caps in Key West. The inverse demand curve for caps is:
P = 30 - 0.4 Q
where P is the price of a cap and Q is the number of caps sold per hour. Thus, the marginal revenue for the Parrot Shop is:
MR = 30 - 0.8 Q.
The Parrot Shop is the only employer in town, and faces an hourly supply of labor given by:
w = 0.9 E + 5
where w is the hourly wage rate and E is the number of workers hired each hour. The marginal cost associated with hiring E workers, therefore, is:
MC E = 1.8 E + 5.
Each worker produces two caps per hour. How many workers should the Parrot Shop hire each hour to maximize its profit What wage will it pay How much will it charge for each cap
P = 30 - 0.4 Q
where P is the price of a cap and Q is the number of caps sold per hour. Thus, the marginal revenue for the Parrot Shop is:
MR = 30 - 0.8 Q.
The Parrot Shop is the only employer in town, and faces an hourly supply of labor given by:
w = 0.9 E + 5
where w is the hourly wage rate and E is the number of workers hired each hour. The marginal cost associated with hiring E workers, therefore, is:
MC E = 1.8 E + 5.
Each worker produces two caps per hour. How many workers should the Parrot Shop hire each hour to maximize its profit What wage will it pay How much will it charge for each cap
التوضيح
Given;
P = 30-0.4Q, where P is the price...
Labor Economics 5th Edition by George Borjas
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