In the short run, by definition, the capital stock is fixed. Show what would happen to the demand for labor if the capital stock were fixed at 20 units instead. Find the equation for the firm’s new demand curve for labor. What would be the new optimal level of labor, assuming W stays at $10? 20c. Finally, show what would happen to the firm’s demand for labor if labor became more productive so that the production function could now be represented by the formula Q = 2KL − 0.025KL2 , which would make the marginal product expression at K = 10 MPL = 20 − 0.5L. Find the equation for the firm’s new demand curve for labor. What would be the new optimal level of labor assuming W stays at $10?

You want to paint your room yellow, so you get some samples at the paint store. when you hold the sample against your white wall, it looks different from the way it looks against the green curtain. a psychologist would attribute this to perceptual constancy. visual paradoxes. contrast effects. threshold differences.

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2. the language of price controls consider the market for rental cars. suppose that, in a competitive market without government regulations, the equilibrium price of rental cars is $58 per day, and employees at car rental companies earn $19.50 per hour. complete the following table by indicating whether each of the statements is an example of a price ceiling or a price floor and whether it results in a shortage or a surplus or has no effect on the price and quantity that prevail in the market. statement price control effect there are many teenagers who would like to work at car rental companies, but the minimum-wage law sets the hourly wage at $23.00. the government has instituted a legal minimum price of $87 per day for rental cars. the government prohibits car rental companies from renting out rental cars for more than $87 per day.