Question: 1.) Suppose a monopolist has a production function given by Q: L'SK'SAS a result, r' I. MPL= I! and MPK= 5' The monopolist can purchase

1.) Suppose a monopolist has a production function given by Q: L'SK'SAS a result, r' I." MPL= I!" and MPK= 5'" The monopolist can purchase capital (K) at a price r =$25 The monopolist can purchase labor (L) at a price of w = $9 The demand curve the monopolist faces is P = 130 -20. A. What is the monopolists total cost function? B. How many units of output will the monopolist produce to maximize prot? C. How much labor will the monopolist need to employ? D. What price should the monopolist charge to maximize prots? E. Compared to a competitive market (Assume MC above is the market supply), what is the deadweight loss? F. What is the value of the Lerner Index for this monopolist

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