Hi There Can You Please Answer This Question For Me And Explain Write The Steps
Hi there, can you please answer this question for me and explain/write the steps (detailed) of how you got there? Thank you
Firm’s production function: Q = A(L^α)(K^β)
Thus the marginal product of labor is given by: MPl = αAL^(α-1)*K^β
& the marginal product of capital is: MPk = βA(L^α)K^(β-1)
Suppose A=1, α = 1/2, and β = 1/2
& price of labor, w = 1 and the price of capital, r = 9
What is the total cost of producing Q units of output?
What is the marginal cost of production?
Suppose the demand curve is facing the monopolist is P = 78-6Q. How much output should the monopolist produce in order to maximize profits?
What price should the monopolist charge?
What is the deadweight loss due to the monopoly?
What value does the Lerner Index take in this situation?