The table below provides the production function for Danny’s Deliveries, a bicycle delivery service in an urban area. Danny’s operates in a perfectly competitive market and charges $20per delivery. Employees are equally proficient at riding a bicycle, and Danny is able to hire as many constant-quality (equally productive) delivery persons at the going market wage rate as he wants. Assume labor is the only variable input,Danny has fixed costs of $50per day, and Danny’s goal is to maximize profit. ALSO, am confused on all questions, specifically #5. Does it mean in general at $100 or in reference to #4 TC TVC+TFC Profit MPL = AQ/AL MRPL VMPL TVC- Lx W #workers | Output/Day 20 30 4 40 38 Complete the table and fill in the blanks for numbers 1 -3 below assuming that the wage rate is $80 per day worker. Diminishing returns to labor set in when Danny hires the 2 Danny is hiring workers in a labor market that is 3.Applying the profit-maximizing hiring rule, Danny hires Fill in the blanks for numbers 4 - 6 below assuming that the wage rate increases to $100 per day 4.According to the profit-maximizing hiring rule, Danny should hire workers. workers his TC = and his profit- Danny's TR workers If Danny has fixed costs of $75 instead of S50 per day, he should hire

) diminishing returns is when MPL starts falling , from 3rd unit of Labor, thus when 3rd Labor unit is hired. 2) this Labor market is perfectly Competitive 3) at profit maximization, wages = VMPL Thus at Labor units equal to 5 4.)So the profit maximization rule, so VMPL is greater than or equal to wages. So now wage is 100. Thus hire L equals to 4 5.) TR, TC, profit is for L=4 where profit is maximum when wages equal to 100. TR = 720, TC = 450, profit = 270. 6) optimal level of employment = 4 workers Bcoz at eqm, VMPL >= wages, independent of fixed costs level MP_L = delta Q/delta L, delta Q = MP middot delta L, Price = $20 Fixed cost (FC) = 50 diminishing returns is when MPL starts falling, from 3rd unit of Labor, thus when 3rd Labor unit is hired. this Labor market is perfectly Competitive at profit maximization, wages = VMPL Thus at Labor units equal to 5 So the profit maximization rule, so VMPL is greater than or equal to wages. So now wage is 100. Thus hire L equals to 4 TR, TC, profit is for L = 4 where profit is maximum when wages equal to 100. TR = 720, TC = 450, profit = 270.Optimal level of employment = 4 workers Bcoz at eqm, VMPL > = wages, independent of fixed costs level.

The table below provides the production function for …

Answers

olp Mf 5D 886060 8D 130 30 2 20 13 ato 400 160-0310 190 330 1o800 G0o 4 310 4o 250 366 120 20 400 450 408500 50 -a -40460 600 6b0 38 · Rked cost (Fe)-50

Similar Solved Questions

1 answer

Circumfer. cm) 5.93+0.03 10.45+0.05 13.30+0.03 18.45 ± 0.05 Object Description Penny D" cell battery PVC cylinder...

Circumfer. cm) 5.93+0.03 10.45+0.05 13.30+0.03 18.45 ± 0.05 Object Description Penny D" cell battery PVC cylinder A PVC cylinder B Tomato soup can ameter cm 1.90+0.01 3.30±0.02 4.23 ± 0.02 04+0.02 6+0.1 1.2 ±0.1 2-Calculate the mean x (the mean is only one value). 3- ...

The table below provides the production function for Danny’s Deliveries, a bicycle delivery service in an...

Question:

Answers

Similar Solved Questions