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RSB [31]
2 years ago
10

Consider a firm which produces T-shirts according to Q = L^0.5, where Q denotes output and L is labor input. The domestic wage i

s w = 2. The firm can sell its output for a given price of p = 1.
(a) Determine the profit-maximizing labor input and the profit of the firm.
Business
1 answer:
Luden [163]2 years ago
4 0

From the calculation below, the profit-maximizing labor input is 0.0625, and the profit of the firm is 0.125.

<h3>How do we determine profit-maximizing labor input and profit?</h3>

From the question, we can obtain:

R = Revenue = Q*P = L^0.5 * 1 = L^0.5

C = Cost = w * L = 2L

P = Profit = R - C = L^0.5 - 2L

To obtain the profit-maximizing labor input, the first derivative of P is taken, equated to zero, and we solve for L as follows:

P' = 0.5L^-0.5 - 2 = 0

0.5L^-0.5 = 2

L^-0.5 = 2 / 0.5

L^-0.5 = 4

L^(-0.5/-0.5) = 4^(-1/0.5)

L = 0.0625 ----> profit-maximizing labor input

The profit (P) of the firm can now be calculated by substituting L = 0.0625 into the P function as follows:

P =  0.0625^0.5 - (2 * 0.0625) = 0.125 --------> Profit of the firm

Learn more about profit function here: brainly.com/question/16866047.

#SPJ1

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A social media campaign is a planned marketing initiative that uses social media platforms to raise consumer awareness, interest, and loyalty toward a company, brand, product, or service. Strategic planning, audience targeting, and measurable results are all part of social media marketing initiatives. You can utilize a variety of marketing campaigns to meet different marketing objectives inside your company, including the following: campaign using traditional media. seasonal marketing blitz. campaign to launch a product. An overview of everything you want to do and want to accomplish on social media is a social media marketing strategy. It directs your behaviour and informs you of your success or failure. Your plan will work better if it is more detailed.

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3 0
1 year ago
Briefly evaluate the effectiveness of artificial trade barriers, such as tariffs and import quotas, as a way to achieve and main
eimsori [14]

Answer: Reduction of imports will move spending on another national output to spending on domestic output

Explanation:

Artificial tree barrier such as tariff and import quotas reduce unemployment in one US industry and has another industry increase it's productivity due to this effect. Reduction of imports will move spending on another national output to spending on domestic output, this would cause the domestic output and employment to rise

5 0
2 years ago
Strieby Corp. operates a business with three separate entities as subsidiaries that operate as a unitary business: Matty Corp.,
Zielflug [23.3K]

Answer:

Those that will be required to file a California return are; Matty,

Strieby, Kennedy and Jackson .

Explanation:

Those that will be required to file a California return are; Matty, Strieby, Kennedy and Jackson. From the question we are informed that all of the entities involved are operating unitary Business, which is the same concept followed by California. And we know that

Unitary business can be regarded as group of persons which are related and having interdependent business activities/operations. So in this case, single California return will be filled by the entities involved.

3 0
3 years ago
You have been accepted into college. The college guarantees that your tuition will not increase for the four years you attend. T
Rasek [7]

Answer:

$73,254.81

Explanation:

We assume fees paid as annuity (PMT). Now, we have to find Present Value (PV) of annuity

PV = PMT*(1-  1/(1+r)^n) / r

Where PMT = 10000, n = 8 payments, r r = ​4.0%/2 = 2% = 0.02

PV = $10,000 * (1 - 1/(1+0.02)^8) / 0.02

PV = $10,000 *  (1 - 1/1.171659381) / 0.02

PV = $10,000 * 0.146509629 / 0.02

PV = $73254.8145

PV = $73,254.81

$73,254.81 is the money i must deposit today if i intend to make no further deposits and would like to make all the tuition payments from this account.

6 0
3 years ago
Cameron loves to know about and purchase the most up-to-date technological gadgets. Among his friends, he is almost always the f
Lisa [10]

Answer:

A. Innovator

Explanation:

Adopter categories divides consumers into segments based on their willingness to try out a new ideas or product.

There are five groups of adopters:

1. Innovators: Cameron belongs to this group. Innovators are people who adopt new ideas because they are new. They are the first category of people to try out new things.

2. Early adopters: Unlike innovators, these group of consumers are concerned about their reputation in the society. They don't just purchase a product because it is new.

3.Early majority: These group of consumers purchase a product based on the satisfaction or benefits they will get from buying it.

4. Late majority: They are the fourth group to adapt to a product. They are consumers who takes more precautions before buying a new product. They always rely on confirmation from others before they adopt new ideas.

5. Laggards: The fifth and last grout to accept new ideas. They accept new ideas when being coerced to or they see everyone around them has adopted the new idea.

6 0
3 years ago
Read 2 more answers
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