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26.10 Rabelaisian Restaurants has a monopoly in the town of Upper Glutton. Its production function is Q = 10L where L is the amount of labor it uses and Q is the number of meals produced. In order to hire L units of labor, Rabelaisian Restaurants must pay a wage of 20+ 0.1L per unit of labor. The demand curve for meals at Rabelaisian Restaurants is given by P = 50 - Q/1000 The prot maximizing output for Rabelasian Restaurants is: (a) 12,000. (b) 24,000. (c ) 3,000. (d) 2,000. (e) 1,500.

26.10 Rabelaisian Restaurants has a monopoly in the town of Upper Glutton. Its production function is Q = 10L where L is the amount of labor it uses and Q is the number of meals produced. In order to hire L units of labor, Rabelaisian Restaurants must pay a wage of 20+ 0.1L per unit of labor. The demand curve for meals at Rabelaisian Restaurants is given by P = 50 - Q/1000 The prot maximizing output for Rabelasian Restaurants is: (a) 12,000. (b) 24,000. (c ) 3,000. (d) 2,000. (e) 1,500.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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26.10 Rabelaisian Restaurants has a monopoly in the town of Upper Glutton. Its production function is Q = 10L where L is the amount of labor it uses and Q is the number of meals produced. In order to hire L units of labor, Rabelaisian Restaurants must pay a wage of 20+ 0.1L per unit of labor. The demand curve for meals at Rabelaisian Restaurants is given by P = 50 - Q/1000 The prot maximizing output for Rabelasian Restaurants is: (a) 12,000. (b) 24,000. (c ) 3,000. (d) 2,000. (e) 1,500.
Transcribed Image Text:26.10 Rabelaisian Restaurants has a monopoly in the town of Upper Glutton. Its production function is Q = 10L where L is the amount of labor it uses and Q is the number of meals produced. In order to hire L units of labor, Rabelaisian Restaurants must pay a wage of 20+ 0.1L per unit of labor. The demand curve for meals at Rabelaisian Restaurants is given by P = 50 - Q/1000 The prot maximizing output for Rabelasian Restaurants is: (a) 12,000. (b) 24,000. (c ) 3,000. (d) 2,000. (e) 1,500.
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