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A restaurant has a monopoly in Montreal. Its production function is Q = 20L, where L is the amount of labor it uses and Q
A restaurant has a monopoly in Montreal.
Its production function is Q = 20L, where L is the amount of labor it uses and Q is the number of meals it produces.
To hire L units of labor, the restaurant must pay a wage of 10+L per unit of labor.
The demand curve for meals at the restaurant is given by: P = 100 - Q/1000.
How many workers will the restaurant (approximately) hire?
1,420
7,100
710
14,200
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