Consider a perfectly competitive, profit-maximizing firm facing the following marginal product of labor function and prices: MPL = 0.
Consider a perfectly competitive, profit-maximizing firm facing the following marginal product of labor function and prices: MPL = 0.5a(K/L)1/2 W = 40 R = 60 P = 10 If total factor productivity (A) is 50 and the firm is employing 16 units of capital (K=16), how much labor (L) would the firm demand?
Content
Consider a perfectly competitive, profit-maximizing firm facing the following marginal product of labor function and prices:
MPL = 0.5a(K/L)1/2
W = 40
R = 60
P = 10
If total factor productivity (A) is 50 and the firm is employing 16 units of capital (K=16), how much labor (L) would the firm demand?
