A monopolist is faced with a linear demand function for its product. When the price is $10, if demand is 180 units, and when the price is $5, demand is 190 units. The quantity of output that the monopolist can supply depends on the units of labor employed and it is determined by the function: S(m) = 4m/2 where m indicates the units of labor employed. In order to produce, the firm needs to pay a fixed cost of 10 and each unit of labor employed costs $6. Question 22 The monopolist's profits as a function of the labor employed are: П(т) — :-56m + 400m/2 – 10 II(m) = –14m³/2+ 400m'/² None of these options
A monopolist is faced with a linear demand function for its product. When the price is $10, if demand is 180 units, and when the price is $5, demand is 190 units. The quantity of output that the monopolist can supply depends on the units of labor employed and it is determined by the function: S(m) = 4m/2 where m indicates the units of labor employed. In order to produce, the firm needs to pay a fixed cost of 10 and each unit of labor employed costs $6. Question 22 The monopolist's profits as a function of the labor employed are: П(т) — :-56m + 400m/2 – 10 II(m) = –14m³/2+ 400m'/² None of these options
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:A monopolist is faced with a linear demand function for its product. When the price
is $10, if demand is 180 units, and when the price is $5, demand is 190 units. The
quantity of output that the monopolist can supply depends on the units of labor
employed and it is determined by the function:
S(m) = 4m/2
where m indicates the units of labor employed. In order to produce, the firm needs
to pay a fixed cost of 10 and each unit of labor employed costs $6.
Question 22
The monopolist's profits as a function of the labor employed are:
П(т) -
= -56m + 400m/² – 10
II(m) = -14m³/2 + 400m/2 – 10
None of these options
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