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Production function: Q(L,K)=L^1/4K^3/4 w=10 per hour, r=5000/unit K=20 Market demand function:Q=350-20P monopoly output market, competitive input market find sr equilibrium price and quality for input,
Production function: Q(L,K)=L^1/4K^3/4
w=10 per hour, r=5000/unit
K=20
Market demand function:Q=350-20P
monopoly output market, competitive input market
- find sr equilibrium price and quality for input, output
- find lr equilibrium price and quality for input, output
- find total surplus
- compare lr equilibrium and total surplus and find dwl
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