6. The production function of a firm, which operates as a monopoly in both the product and factors market, is Q = 4L. The demand function for its product is Q = 100-P, and the labour supply function it faces is L = 0.5W - 20. (a) What is the firm's profit-maximising level of labour employment, L? What is the wage rate, W? (b) (c) What is profit-maximising level of output, Q? (d) And what is the product price, P?

6. The production function of a firm, which operates as a monopoly in both the product and factors market, is Q = 4L. The demand function for its product is Q = 100-P, and the labour supply function it faces is L = 0.5W - 20. (a) What is the firm's profit-maximising level of labour employment, L? What is the wage rate, W? (b) (c) What is profit-maximising level of output, Q? (d) And what is the product price, P?

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter14: Labor Markets And Income

Section: Chapter Questions

Problem 8SCQ: Table 14.13 shows information from the supply curve for labor for a monopsonist, that is, the wage...

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