Question

Suppose a monopolist can purchase Labor at a price w = 1 and can purchase Capital at a price r = 9. The monopolist’s production function is given by Q = L1/2K1/2. The demand facing the monopolist is given by P = 78 – 6Q.
(a) What is the Monopolist’s total cost function?
(b) What is the Monopolist’s Marginal Cost?
(c) Complete the following table. In the first column, find the values for the Monopolist. In the second column, find the values if the market were instead perfectly competitive.



$1.99
Sales7
Views489
Comments0
  • CreatedAugust 05, 2013
  • Files Included
Post your question
5000