Question: 3. (34 points) Suppose a monopolist has a production function given by Q = L12K 12. Therefore. K- 1/2 MPL = 24 , and MPK

3. (34 points) Suppose a monopolist has a production function given by Q = L12K 12. Therefore. K- 1/2 MPL = 24" , and MPK = 2K 2 The monopolist can purchase labor, L at a price w = 16, and capital, K at a price of r = 9. The demand curve facing the monopolist is P = 144 - 20. a) (8 points) What is the monopolist's total cost function? 14 = 4 /3 Q L : 3/4 Q TC = 14 ( 3/ 4 Q ) + 9 ( 41 3 6 ) = 12 Q + 12 Q TC = 241

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

3. (34 points) Suppose a monopolist has a production function given by Q = L^1/2 * K^1/2. Therefore, MP L = (K^1/2) / (2L^1/2) and MP K = (L^1/2) / (2K^1/2) The monopolist can purchase labor, L at a...

3. (34 points) Suppose a monopolist has a production function given by Q = Ll'lKl-"z. Therefore, K132 L12 MP = ,andMP = , L 2 K 2x1- LI :2 The monopolist can purchase labor, L at a price w = 16, and...

3. Suppose a monopolist has a production function given by Q = L12K1/2. Therefore, MPL 21 1/2 , and MPK = L1/2 21-1/2 The monopolist can purchase labor, L at a price w = 16, and capital, K at a price...

*I am stuck between two answers on part F) of this problem...which leads to a correct or incorrect answer in part G). I could use a second set of eyes, to help me solve for F & G. Thank you....

Suppose a monopolist has a production function given by Q=L/2K1/2. Therefore, MPL K/2 21/2 and MPK -1/2 2K/2 The monopolist can purchase labor, L at a price w 16, and capital, K at a price of r = 9....

wanted help for this question w proper formatting(reference answer given): Question 1 (8 points) Consider a rm with the production function, Q = K1/4L1/2. Assume that the price of one unit of capital...

1. (30 points) Suppose a monopolist faces the following demand curve: P =750 - Q. If the long run marginal cost of production 1s constant and equal to $30. a) (5 points) What 1s the monopolist's...

Question 1 (2 points) Lilly is the price-taking owner of an apple orchard. The price of apples is high enough that Lilly is earning positive economic profits. In the long run, Lilly should expect...

Question 4 (20 minutes) The province wishes to improve our environment and accordingly will subsidise your municipality $ 2 for every $1 you spend on sewage facilities up to a maximum of $ 1920. Your...

1. Suppose there is an electric bike shop that faces the following demand function Q = 250 - .25 p + 4 ps , where Q is the quantity of e-bikes, p is the price of an e-bike, and ps is the price of a...

which of the following is a direct cost of manufacturing a sport boat? a. cost of boat engine b. salary of an engineer who rearranges plant layout c. depreciation on plant and equipment D. cost of...

Only need answer. Don't explain. Important!!!! Type it in chat box plz!!!!!!!. Don't write in paper!!!!! 1. Use Gauss elimination to solve the following systems of equations: (a) (b) (e) 21-22 +2233...

You need $ 5 0 , 0 0 0 in 6 years. If you invest today at an annual interest rate of 7 % compounded quarterly, how much must you invest? $ 3 2 , 9 7 5 $ 3 3 , 2 3 2 $ 3 3 , 1 9 8 $ 3 4 , 1 1 7

**PLEASE ANSWER IN EXCEL WITH DECISION TREE ** A firm that plans to expand its product line must decide whether to build a small or a large facility to produce the new products. If it builds a small...

6. What is meant by: accessibility carries greater weight than relevance?

1. To learn how to develop a vision that can be communicated. To gain insight into the importance of game theory for communication strategies.

9. Take a view or attitude that you hold strongly. Search for information that is opposed to this view or attitude. Discuss.