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Title: A firm that only employs labor (L) has the following production function:f(L) = 20L - L2Let the ... Post by: PaulKet on Nov 12, 2017 A firm that only employs labor (L) has the following production function:
f(L) = 20L - L2 Let the price of output be normalized to one and the price of labor (relative to output price) is w. a. Write out the profit function for this firm as a function of labor, L. b. What is the necessary first-order condition for the firm to maximize profit when L > 0? c. Compute the profit maximizing amount of labor as a function of the wage. What is the effect of an increase in wage on the firm's optimal employment level? Use calculus to solve this. Title: Re: A firm that only employs labor (L) has the following production function:f(L) = 20L - L2Let the ... Post by: SaHiN22 on Nov 12, 2017 Content hidden
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