15.1.16) Suppose a perfectly competitive firm's production function is q = L0.2K0.6and it takes the wage and [NB1]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 answers are given but need explanation. Please show all the steps on how these answers were derived. Please do not copy from other solutions. Thank you.