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# short-run labor demand curve

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Consider a firms short run decision to hire workers. assume that a firm produces goods for sale in a perfectly competitive market. labor markets are competitive as well. assume the production function is Q=40L-3L(squared). One unit of a good is sold for \$2

a) why does capital not appear in the production function?

b) derive the short-run labor demand curve. (simply plug numbers in to approximate)

c) assuming the wage rate is \$25/hour, how many workers will this firm hire in the short run?

https://brainmass.com/economics/perfect-competition/short-run-labor-demand-curve-69726

#### Solution Preview

econ
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consider a firms short run decision to hire workers. assume that a firm produces goods for sale in a perfectly competitive market. labor markets are competitive as well. assume the production function is Q=40L-3L(squared). One unit of a good is sold for \$2

a) why does capital not appear in the production function?

Ans :
As the production function in the above example is given for short run, the capital stock was assumed to be ...

#### Solution Summary

The short-run labor demand curve is examined.

\$2.19