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Consider a firm which is perfectly competitive in both product and labour markets. Suppose the product price is p=$1.2, wage is w=$13, and the production
Consider a firm which is perfectly competitive in both product and labour markets. Suppose the product price is p=$1.2, wage is w=$13, and the production function is Q=L(32-L). For this production function MPL=32-2L. Write down an expression for the firm's revenue minus cost (i.e. its profit). Note there is only one input here, you can consider that this firm does not use capital or that the production function given is for a fixed level of capital in the short run).
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