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
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Answer:
B. Upward distortion
Explanation:
Based on the information provided within the question it can be said that this seems to be an example of upward distortion. In the context of business, this refers to when a lower employee fails to, or is hesitant to communicate negative information to his/her superiors due to the consequences. Which is what Enrique is doing in this scenario.
Answer:
increase short-run aggregate supply.
Explanation:
Given that energy is an important part of the production process. It is often considered to be the next in line after labor, thereby having a significant effect on the economy's aggregate supply of real production.
Hence, a decrease in energy prices will decrease the production cost and in turn lead to an increase in short-run aggregate supply, thereby making the SRAS curve shift rightward.
This is because a decrease in energy prices will make it possible for companies to increase their supply of real production at a cheaper cost
$2727
What is compound interest?
Compound interest, also known as interest on principal and interest, is the adding of interest to the principal amount of a loan or deposit. It occurs when interest is reinvested, or added to the loaned capital rather than paid out, or when the borrower is required to pay it, so that interest is generated the next period on the principal amount plus any accumulated interest. In finance and economics, compound interest is common.
In contrast to simple interest, which does not compound since past interest is not added to the principal for the current period, compound interest allows interest to build over time. The interest per period multiplied by the number of periods in a year yields the simple annual interest rate.
Learn more about compound interest with the help of given link:-
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Answer:
Cash flow is important to government entities because:
As with non-government entities, cash flow is important to government organizations because it is required for the operations of any organization regardless of whether they are government-owned or not, for-profit or not.
The measurable difference in the cash balance of any organization from one period to the next is referred to as Cashflow. No business or entity can continue operations if they keep taking out or spending more cash than they can make.
An administrator can plan for cash flow using a Cash Flow Planner.
This can take the form of a simple excel spread sheet with one column showing on one side all the monies that one is expecting to come in (Account Receivables) and an adjacent column showing all the monies one is expecting to pay out (Account payables).
At the bottom of the excel, you can show the bank balance.
There are specialised apps that help perform this function. An example would be Quickbooks, Planware, Cash Flow Planner, etc.
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