The inverse market demand curve for a final good is (p=50-Q) and the wage rate is (w=20).

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The inverse market demand curve for a final good is \(p=50-Q\) and the wage rate is \(w=20\). Each unit of output requires half a unit of labor, \(L\), and no other factor, \(Q=2 L\). If factor and output markets are competitive, what are the equilibria in both factor and output markets? How does your answer change if both the output and factor markets are a monopoly?

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Microeconomics

ISBN: 9781292215624

8th Global Edition

Authors: Jeffrey Perloff

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