Re: DSE 2012- Question 16,29 and 30.

Posted by maahi on Apr 23, 2013; 12:21pm
URL: http://discussion-forum.276.s1.nabble.com/DSE-2012-Question-16-29-and-30-tp7580148p7580150.html

can u do this one ? give d steps only .
Suraksha’ is the sole producer and supplier of security systems
in India and the sole employer of locksmiths in the labour market. The demand for
security systems is D( p ) = 100 − p , where p is the price. The production of security
systems only requires locksmiths and the production function is given by f ( L) = 4 L ,
where L is the number of locksmiths employed. The supply curve for locksmiths is
                                                 
given by L( w) = max    0, w/2-20 , where w is the wage rate.
                                   
24. How many locksmiths will ‘Suraksha’ employ?
       a) 5
      b) 10
     (C) 15
      d) 20

25. If the government sets the minimum wage is 70 , how many locksmiths will
Suraksha employ?
         a)            5
         b)            10
         c)            15
         d)            20