A firm?s production function is Q=L^0.5K^0.5, where Q stands for output, L for labour, and K for capital. The firm is a monopolist in the output market but it hires the inputs in perfectly competitive markets at constant per unit prices w=4 and r=4 for labour and capital, respectively. The market demand function is Q=80-p. Determine the profit maximizing input use, the output price, and the monopolist?s profit.
Paper#29714 | Written in 18-Jul-2015Price : $22