Lambda computer products competed for and won a contract to produce two prototype units of a new type of computer that is based on laser optics rather than on electronic binary bits. the company expects "learning" to occur relative to labor and also relative to the pricing of materials, equipment and supplies. the first unit produced by lambda took 5,000 hours to produce and required $250,000 worth of material, equipment usage, and supplies. the second unit took 3,500 hours and used $200,000 worth of materials, equipment usage, and supplies. labor is $30 per hour. use exhibit 6.5. a. lambda was asked to present a bid for 10 additional units as soon as the second unit was completed. production would start immediately. what would this bid be? cost for 10 more units $

Suppose someone wants to sell a piece of land for cash. the selling of a piece of land represents turning econ

Suppose a firm faces a fixed price of output, 푝푝= 1200. the firm hires workers from a union at a daily wage, 푤푤, to produce output according to the production function 푞푞= 2퐸퐸12. there are 225 workers in the union. any union worker who does not work for this firm is guaranteed to find nonunion employment at a wage of $96 per day. a.what is the firm’s labor demand function? b.if the firm is allowed to choose 푤푤, but then the union decides how many workers to provide (up to 225) at that wage, what wage will the firm set? how many workers will the union provide? what is the firm’s output and profit? what is the total income of the 225 union workers? c.now suppose that the union sets the wage, but the firm decides how many workers to hire at that wage (up to 225). what wage will the union set to maximize the total income of all 225 workers? how many workers will the firm hire? what is the firm’s output and profit? what is the total income of the 225 union workers? [hint: to maximize total income of union, take the first order condition with respect to w and set equal to 0.]

Qwest airlines has implemented a program to recycle all plastic drink cups used on their aircraft. their goal is to generate $7 million by the end of the recycle program's five-year life. each recycled cup can be sold for $0.005 (1/2 cent). a. how many cups must be recycled annually to meet this goal? assume uniform annual plastic cup usage and a 0% interest rate. b. repeat part (a) when the annual interest rate is 12%. c. why is the answer to part (b) less than the answer to part (a)?