A firm operates in a perfectly competitive output market and aperfectly competitive input market.The production function for the firm is:f(N, K) = 4N KIn the short-run the level of capital is fixed at 27. If the price ofoutput is 12, and wage rate is $10$, how many workers shouldthe firm hire?Draw a diagram of your solution.

f(N,K) = 4N1/2 K1/3 Differentiate f(N,K) w.r.t N to get MPN => MPN = df(N,K) / dN => MPN = 4…

Answered: A firm operates in a perfectly…

A firm operates in a perfectly competitive output market and a perfectly competitive input market. The production function for the firm is: f(N, K) = 4N K

Principles of Microeconomics (MindTap Course List)

8th Edition

ISBN:9781305971493

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter18: The Markets For The Factor Of Production

Section: Chapter Questions

Problem 3PA

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Question

A firm operates in a perfectly competitive output market and a
perfectly competitive input market.
The production function for the firm is:
f(N, K) = 4N K
In the short-run the level of capital is fixed at 27. If the price of
output is 12, and wage rate is $10$, how many workers should
the firm hire?
Draw a diagram of your solution.

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