The records of penny Co. Indicated that 415,000 of merchandise should be on hand December 31. The phyiscla inventory indicates t
1 answer:
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Answer:
The option (b) 2.4 is correct.
Explanation:
We can find price elasticity of demand by using the formula shown in the attachment attached with.
Since we know the quantities of product associated with the market price of the product, by putting values in the equation we have:
Price elasticity of Demand =
= [(6000 - 4000) / (6000 + 4000)/2] / [(13 - 11) / (13+11)/2]
Price elasticity of Demand = 2.4
So this is how we can find the price elasticity of supply which says that the producers will respond to prices drop by producing lower quantity of product.
Answer:
(A) 15 × p
(B)
(C)
Explanation:
(B) direct= demand function of labor will be,
Q: f(w),
where Q is labor demand quantity and is function of wage
K=9 constant, then production function changes to,
Marginal product of labor:
Marginal revenue product or value of marginal product:
This is showing what revenue a firm will generate due to hiring one additional unit of labor.
So firm will keep hiring until the revenue the additional labor is generating is equal to its hiring cost or wage.
So, putting MRP or VMP to wage:
By solving,
And the multiplicative term is
(A) Inverse demand function of labor will be,
W: f(Q)
where W is wage rate and demand function of labor demanded quantity.
As previously solved,
and the multiplicative constant term is 15 × p.
(c) In long run capital will also variate, so production function will be,
( p is market price of good that firm is producing using labor)
putting it equal to Wage)
and the constant term is .
Note:
I did a) second place and b) on first . I already put the serial alphabet on the start of the answer.