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+.1L, where W is the daily wage and L is the number of persondays 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 = 41 – Q/1,000, where P is the price and Q is the number of sales per day.
(a) Find the profit-maximizing output for Gargantuan. ________.
(b) How much labor does it use? ________. What is the wage rate that it pays? ________.
(c) What is the price of antimacassars? ________. How much profit is made? ________.