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zvonat [6]
3 years ago
5

The Upstart Company has the following production function.

Business
1 answer:
Alenkasestr [34]3 years ago
7 0

Answer:

b. 4

Explanation:

The computation of the real wage rate is as follows:

<u>Number of workers      Number of cases produced    Marginal product </u>

0                                                  0                                                        -

1                                                   10                                             10

2                                                  19                                             9

3                                                  26                                            7

4                                                 31                                              5

5                                                34                                               3

At optimal MP = real wage rate.

So,  

For 4th worker , MP is 5

And for 5th worker ,MP is 3

So in the case when we hire 4 workers so the real wage rate should lies in between of 3 and 4

Therefore the real wage rate is 4

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Answer:

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Explanation:

Giving the following information:

Location choice I has monthly fixed costs of $100,000 and per-unit variable costs of $10. Location choice J has monthly fixed costs of $150,000 and per-unit variable costs of $9.

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Now, to calculate the indifference point, we need to isolate X:

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