A monopolist has the following production function Q-L050s where Lis the number of units of labour and K is the number of units of capital used in the production process. Suppose that the cost per unit of labour is $4 and the cost per unit of capital is $16 and the monopolist takes the input prices as given. Assume the market demand is P-24-Q If the monopolist is going to maximise the profit, how much output will they produce? How many units of labour and capital is the firm going to employ? How much profit is the firm going to earn?

A monopolist has the following production function Q-L050s where Lis the number of units of labour and K is the number of units of capital used in the production process. Suppose that the cost per unit of labour is $4 and the cost per unit of capital is $16 and the monopolist takes the input prices as given. Assume the market demand is P-24-Q If the monopolist is going to maximise the profit, how much output will they produce? How many units of labour and capital is the firm going to employ? How much profit is the firm going to earn?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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