Question: Intermediate Microeconomics Instructor: Sandhya Patlolla Assignment 7 1) Suppose a rm's production function is given as Q = f (L) = 30L0'75. a) If the

Intermediate Microeconomics Instructor: Sandhya Patlolla Assignment 7 1) Suppose a rm's production function is given as Q = f (L) = 30L0'75. a) If the rm is operating in a purely competitive product market and receiving a price of $15 for its product. Calculate rm's labor demand curve. b) Now suppose product market has changed to non-competitive and rm is receiving a price of $20 for its product and the price elasticity of demand for the product is -1.25. Calculate rm's labor demand curve. c) If the wage rate in the market is $10 per unit and rm is operating in purely competitive labor or resource market. (i) How many units of labor is hired by the rm in purely competitive product market (case in part a)? (ii) How many units of labor is hired by the rm in non-competitive product market (case in part b)? (1) Now suppose rm is operating in monopsony (non-competitive) labor or resource market and facing a labor supply with price elasticity of supply equal to 2. If the rm pays a wage rate of $6. (iii) How many units of labor is hired by the rm in purely competitive product market (case in part 21)? (iv) How many units of labor is hired by the rm in non-competitive product market (case in part b)

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