Question
A company has monopoly in production of A. There is no other industry in its production location city, its labor supply equation is W =
A company has monopoly in production of A. There is no other industry in its production location city, its labor supply equation is W = 10+0.1L,
W for daily wage, L for number of person-days of work performed.
The production function, Q = 10L, L for daily labor supply, Q for daily output.
Demand curve for production is P = 66 Q/900, P is price, Q is for number of sales per day.
So company's profit-maximizing output is?
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Macroeconomics Principles and Applications
Authors: Robert E. Hall, Marc Lieberman
6th edition
1111822352, 1111822354, 9781133708742 , 978-1111822354
