Monopoly behaviour

Posted by rongmon on Apr 26, 2014; 4:42am
URL: http://discussion-forum.276.s1.nabble.com/Monopoly-behaviour-tp7587823.html

Gargantuan Enterprises has a monopoly in the production of antimacassars. The labor supply equation there is W = 10+0.1L, where W is the daily wage and L is the number of person days of work performed. Antimacassars are produced with a production function, Q = 10L, where L is daily labor supply and Q is daily output.

The demand curve for antimacassars is P = 41 − Q/1000, where P is the price and Q is the number of sales per day.

Find the profit-maximizing output for Gargantuan.