1. A monopolist has a production function,Q = AL KBwith 0 < a+B < 1. The cost of capital is r, the wage rate is w, and themonopolist takes both as given. The demand function for the monopolistisMQ1+ exp {p}!!What is the long-run demand for labor?

Given Production function Q=ALαKβQ=M1+exp(P) Where0<α+β<1 Cost of capital =r Cost of labor=w…

Answered: 1. A monopolist has a production…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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1. A monopolist has a production function, Q = AL KB %3D with 0 < a+B<1. The cost of capital is r, the wage rate is w, and the monopolist takes both as given. The demand function for the monopolist is Q: 1+ exp {p} %3D What is the long-run demand for labor?