Question

/Show all the steps in your calculations! Using graphs - explain them carefully! Motivate all answers! / The manufacturer Thai Bambu is a profit maximizing company providing the market with bambu chairs. The table shos us the connection between the production result and the input of the only variable input, labor (L) in the short run. Every single chair is sold for 500 SEK. A. Draw in a graph the company's supply curve for the production factor L. (max. 3 points) "No graph no points" B. How many units of labor will the company emply and how many chairs will be produced if the company wants to maximise it's profit if the price of labor is 1250 SEK per unit? Show your calculations and motivate your answer using relevant economic theory - just a numerical answer will give you 0 points. (max. 6 points) C. Thai Bambu have fixed costs of 30 000 SEK. What is the companys profit? Show your calculations and motivate your answer using relevant economic theory - just a numerical answer will give you 0 points. (max. 5 points) Labour (L) 10 20 30 40 50 60 Quantity of chairs produced 220 270 310 340 360 370

          /Show all the steps in your calculations! Using graphs - explain them carefully! Motivate all answers! /
The manufacturer Thai Bambu is a profit maximizing company providing the market with bambu chairs. The table shos us the connection
between the production result and the input of the only variable input, labor (L) in the short run. Every single chair is sold for 500 SEK.
A. Draw in a graph the company's supply curve for the production factor L. (max. 3 points) "No graph no points"
B. How many units of labor will the company emply and how many chairs will be produced if the company wants to maximise it's profit if the
price of labor is 1250 SEK per unit? Show your calculations and motivate your answer using relevant economic theory - just a numerical answer will give you 0
points. (max. 6 points)
C. Thai Bambu have fixed costs of 30 000 SEK. What is the companys profit? Show your calculations and motivate your answer using relevant economic theory -
just a numerical answer will give you 0 points. (max. 5 points)
Labour (L)
10
20
30
40
50
60
Quantity of chairs produced
220
270
310
340
360
370

/Show all the steps in your calculations! Using graphs - explain them carefully! Motivate all answers! /
The manufacturer Thai Bambu is a profit maximizing company providing the market with bambu chairs. The table shos us the connection
between the production result and the input of the only variable input, labor (L) in the short run. Every single chair is sold for 500 SEK.
A. Draw in a graph the company's supply curve for the production factor L. (max. 3 points) "No graph no points"
B. How many units of labor will the company emply and how many chairs will be produced if the company wants to maximise it's profit if the
price of labor is 1250 SEK per unit? Show your calculations and motivate your answer using relevant economic theory - just a numerical answer will give you 0
points. (max. 6 points)
C. Thai Bambu have fixed costs of 30 000 SEK. What is the companys profit? Show your calculations and motivate your answer using relevant economic theory -
just a numerical answer will give you 0 points. (max. 5 points)
Labour (L)
10
20
30
40
50
60
Quantity of chairs produced
220
270
310
340
360
370

Added by Ryan M.

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