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2. (30 points) Now consider Min who produces notecards using labor (L) and cardstock (C). Cardstock price of cardstock is $10 per unit. Min's production target is 30 notecards and he faces the following is fixed in the Short Run, while labor is variable in the Short Run. The wage rate is $15 per unit and the production technology: q(L.C) = 2L + 3C (10 points) What is Min's optimal combination of inputs? Label your answers "L" and "C"" and draw a box around your answer. (b) (10 points) What is the slope of Min's LR production expansion path? What is the slope of Min's SR production expansion path? Label your answers "sloper" and "slopese," respectively, and draw a box around your answers. Describe in two sentences or less. (c) (10 points) Consider an increase in the price of cardstock to S12 per unit. Describe the substitution effects in the Short Run and the Long Run in three sentences or less. 3. (40 points) Now assume that you are a monopolist facing the following market demand: Q(p) = 1200 - 2p and the following cost function: CQ) = 100 - 100 + 202 (a) (10 points) What price should you set to maximize revenue? Label your answer "p" and draw a box around it. (10 points) What price should you set to maximize profits? Label your answer "p*" and draw a box around it. (c) marginal cost, marginal revenue, and demand curves. Label curves, intercepts, and the optimal p (20 points) On the following sets of axes, show your answers to (a) and (b). Include the and Q from both (a) and (b). 2. (30 points) Now consider Min who produces notecards using labor (L) and cardstock (C). Cardstock price of cardstock is $10 per unit. Min's production target is 30 notecards and he faces the following is fixed in the Short Run, while labor is variable in the Short Run. The wage rate is $15 per unit and the production technology: q(L.C) = 2L + 3C (10 points) What is Min's optimal combination of inputs? Label your answers "L" and "C"" and draw a box around your answer. (b) (10 points) What is the slope of Min's LR production expansion path? What is the slope of Min's SR production expansion path? Label your answers "sloper" and "slopese," respectively, and draw a box around your answers. Describe in two sentences or less. (c) (10 points) Consider an increase in the price of cardstock to S12 per unit. Describe the substitution effects in the Short Run and the Long Run in three sentences or less. 3. (40 points) Now assume that you are a monopolist facing the following market demand: Q(p) = 1200 - 2p and the following cost function: CQ) = 100 - 100 + 202 (a) (10 points) What price should you set to maximize revenue? Label your answer "p" and draw a box around it. (10 points) What price should you set to maximize profits? Label your answer "p*" and draw a box around it. (c) marginal cost, marginal revenue, and demand curves. Label curves, intercepts, and the optimal p (20 points) On the following sets of axes, show your answers to (a) and (b). Include the and Q from both (a) and (b)