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28 Sep 2019
A monopoly's production function is Q = L^(0.5)*K^(0.5), where L is labor and K is capital. The demand function is p = 100 - Q. The wage, w, is $1 per hour, and the rental cost of capital, r, is $4.
a) Derive the long-run total cost curve euqaiton as a funciton of q.
b) Find the qunatity maximizes the firm's profit
c) Find the optimal input combindation that produces the profit-max quantity.
A monopoly's production function is Q = L^(0.5)*K^(0.5), where L is labor and K is capital. The demand function is p = 100 - Q. The wage, w, is $1 per hour, and the rental cost of capital, r, is $4.
a) Derive the long-run total cost curve euqaiton as a funciton of q.
b) Find the qunatity maximizes the firm's profit
c) Find the optimal input combindation that produces the profit-max quantity.
Kritika KrishnakumarLv10
28 Sep 2019
