Suppose a perfectly competitive firm's production function is q = L0.2K0.6 and it takes the wage and price as given. Then the firm's long-run demand for labor as a function of K, w, and p is

A) p5((0.2/w)2(0.6/r)3).
B) p5((0.2/w)4(0.6/r)5).
C) p5((0.2/w)5(0.6/r)4).
D) p5((0.2/w)3(0.6/r)2).


A

Economics

You might also like to view...

When the economy is at full employment, the

A) natural unemployment rate is equal to 0 percent. B) natural unemployment rate equals the unemployment rate. C) natural unemployment rate is equal to 10 percent. D) unemployment rate is equal to 0 percent. E) frictional unemployment rate is equal to 0 percent.

Economics

Caroline Jahn has a professional degree and is 51 years old. Bob Rubate also has a professional degree and is 29 years old. On average, Caroline most likely earns

a. 75 percent less than Bob b. 7 percent less than Bob c. 75 percent more than Bob d. 7 percent more than Bob e. the same amount as Bob

Economics

If a fishing boat owner brings 10,000 fish to market and the market price is $7 per fish, she will have $70,000 in total revenue. If the average variable cost of 10,000 fish is $4 and the fixed cost of the boat is $20,000 . what is her profit?

a. $1. b. $3. c. $1,000. d. $3,000. e. $10,000.

Economics

Define the following terms and explain their importance to the study of economics

a. common stock b. corporation c. limited liability d. plowback

Economics