Cher0ikk0yGidl Cher0ikk0yGidl
  • 21-01-2017
  • Mathematics
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The demand for a monopoly's output is p = 100 - q. the firm's production function is q = 2l. what is the firm's demand function for labor?

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Alkis
Alkis Alkis
  • 02-02-2017
In order to find the firms demand for labor you havr to solve the profit maximization problem that the firm faces, the problem can be dexcribed mathematically in your example with the following formulas,

[tex]Maximize PQ-wL \\ subject \; to \\ f(L)=q=2L[/tex]

Solving this problem will result to a function that relates the amount of labour (L) with wage(w)


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