15.1.16) Suppose a perfectly competitive firm's production function is q = L^0.2K^0.6and it takes the wage and price as given. Then the firm's long-run demand for labor as a function of K, w, and p is

A) p5((0.2/w)2(0.6/r)3).

B) p5((0.2/w)4(0.6/r)5).

C) p5((0.2/w)5(0.6/r)4).

D) p5((0.2/w)3(0.6/r)2).

Answer:A

15.1.31) If the market demand elasticity is constant at -3 and a monopolist's MPL = 1.2L^-0.5, then the labor demand for the monopoly is:

A) 0.8PL^-0.5.

B) 0.4PL^-0.5.

C) 0.8PL^-2.

D) 0.4PL^-2.

Answer:A

15.1.32) Suppose the market demand elasticity is constant at -2, and there are three identical firms in the oligopolistic market. A Cournot firm's MPL = 1.2L^-0.5, then the labor demand for a Cournot firm is:

A) PL^-0.5.

B)0.6PL^-0.5.

C) 0.2PL^-2.

D) PL^-2.

Answer:A

Notes:

The correct answers are given but need explanations. Please show all the steps on how these answers were derived. Please do not copy from other solutions as I have them already. Thank you.