Unformatted text preview: d) Find the long run competitive equilibrium price and number of firms. Assume that the firm is at the most efficient LR plant size. (2 points) 2. For the production schedule of a perfectly competitive firm given below, answer the following: Lab. Out. Lab. Out. 1 7 6 54 2 16 7 60 3 27 8 64 4 37 9 67 5 46 10 69 a) Calculate the MRP curve if the price of output is $5. Find the profit maximizing level of labor if the wage is $30. Also find the maximum profit of the firm if fixed costs are $100 and labor is the only source of variable costs. (1 point) b) Find the new quantity of labor if (i) only the wage doubles. (ii) only the output price doubles. (iii) both wages and output prices double. (2 points)...
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This note was uploaded on 05/04/2010 for the course ECO 304K taught by Professor Hickenbottom during the Spring '10 term at University of Texas.
- Spring '10