A firm with Perfect Competition in the Labour Market and Perfect Competition in the Output Market. (Short Run) You are the manager of a business that faces perfect competition in the output market and perfect competition in the labour market. The production function of the business is given by: Q = 2L 0.50 The price of the product is $400. The wage rate of the workers is $20 a) Find the optimal amount of labour. Problem 2 A firm with Perfect Competition in the Labour Market and Perfect Competition in the Output Market. (Long Run) You are the manager of a business that faces perfect competition in the output market and perfect competition in the labour market. The production function of the business is given by: Q = 8K0.50L0.25. The price of the product is $100. The wage rate is $5 and the price of capital is $10. a) Find the optimal level of labour and capital. Problem 3 A firm with Monopsony in the Labour Market and Perfect Competition in the Output Market. (Short Run) Suppose a Monopsony firm in the labour market faces market supply of labor given by w = 5L. The production function is Q = 20L The firm sells its output in a perfectly competitive market at a price of $20. Determine the profit-maximizing level of labour and wage offered. Problem 4. A firm with Perfect Competition in the Labour Market and Monopoly in the Output Market. (Short Run) You are the manager of a business that operates as a Monopolist in the output market, and it is a Monopsonist in the local labour market. The production function of the business is given by: Q = 4L In the production function, Q is output, L is the number of workers employed. The wage rate is $10. As a Monopolist, the firm faces a market demand given by: P = 400 - 2Q Problem 5. A firm with Monopsony in the Labour Market and Monopoly in the Output Market. (Short Run) You are the manager of a business that operates as a Monopolist in the output market, and it is a Monopsonist in the local labour market. The production function of the business is given by: Q = 2L In the production function, Q is output, L is the number of workers employed. The wage rate is $10. As a Monopolist, the firm faces a market demand given by: P = 100 - Q As a Monopsonist, the firm faces supply of labour given by w = 10L