Question
Gargantuan Enterprises has a monopoly in the production of antimacassars. Its factory is located in the town of Pantagruel. There is no other industry in
Gargantuan Enterprises has a monopoly in the production of antimacassars. Its factory is located in the town of Pantagruel.
There is no other industry in Pantagruel, and the labor supply equation there is W = 10+0.1L,
where W is the daily wage and L is the number of person-days of work performed.
Antimacassars are produced with a production function, Q = 10L, where L is daily labor supply and Q is daily output.
The demand curve for antimacassars is P = 66 Q/900,where P is the price and Q is the number of sales per day.
The firm's profit-maximizing output is closest to:
1,540 antimacassars.
15,400antimacassars
3,080 antimacassars.
30,800 antimacassars
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