0607(ii) Valentines Restaurants has a monopoly in the town of Palmerston North. Its production function is Q = 10L, where L is the amount of labour it uses and Q is the number of meals produced. In order to hire L units of labour, Valentines must pay a wage of 10 + 0.1L per unit of labour. The demand curve for meals at Valentines is given by P = 41 ? Q/1000.;a) What is the profit-maximising output for Valentines?;b) How many units of labour will Valentines hire?;c) What wage per unit of labour will Valentines pay?
Paper#28579 | Written in 18-Jul-2015Price : $22