Suppose a Price-Taking Firm Uses a Single Input - Labor

question 27

Essay

Suppose a price-taking firm uses a single input - labor - to produce an output x.The production technology has diminishing marginal product of labor throughout.
a.On a graph with labor hours on the horizontal and output on the vertical axis, illustrate the production frontier for this firm.
b.For a given wage rate w and output price p, illustrate three isoprofit curves corresponding to profit levels π < π'< π" -- indicating slopes and intercepts.Suppose the profit maximizing plan results in profit π'.Then use isoprofit to illustrate the profit maximizing production plan for the firm and show how w and p are related to the marginal product of labor at that plan.
c.Where on your graph do all cost-minimizing production plans lie?
d.On a graph with output on the horizontal and dollars on the vertical axis, illustrate the shape of the cost curve for the firm (holding fixed w).Then suppose that, in addition to labor costs, the firm has to pay a recurring (long run) fixed cost F.Where does the long run cost curve lie in relation to the initial (short run) cost curve you drew?
e.On a separate graph, illustrate the short run marginal and average cost curves.Then, on the same graph illustrate the long run marginal and average cost curves in the presence of the recurring fixed cost.f.Indicate where in your graph you can locate the short and long run supply curves for this firm.

Recognize the hierarchical structure of legal authority, including the binding nature of the Constitution and court opinions.

Understand the principles of case briefing, including identifying relevant facts, procedural history, legal issues, and the court's reasoning.

Grasp the organization and importance of codified law, including the United States Code.

Describe the standard methods for briefing cases and the importance of following a recognized format.

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Definitions:

Supply Chain

A supply chain encompasses the sequence of processes involved in the production and distribution of a commodity, from the procurement of raw materials to the delivery of the finished product to the end consumer.

Supply Chain Flows

The movement of goods, information, and finances as they pass through a set of entities from supplier to manufacturer to wholesaler to retailer to consumer.

Importance

The state or fact of being of great significance, value, or consequence.

Cycle View

a perspective in supply chain management focusing on the repeating stages or activities in the supply chain, from raw materials to end-user delivery.