Suppose the (inverse) demand for candles is given by p(Y)=40Y and that the production function for candles is given by Y=4L,

where Y is the number of candles and L is the number of workers. Suppose that workers are paid $32.

How many workers would a firm operating as a monopolist in the output (candle) market hire? How many candles would it produce?

How many workers would be hired in a perfectly competitive market? How many candles would be produced?