Find what is the monopolists total cost function

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Suppose a monopolist can purchase Labor at a price w = 27 and can purchase Capital at a price r = 3. The monopolist's production function is given by Q = L1/2K1/2. The demand facing the monopolist is given by P = 402 - 6Q.

a) What is the Monopolist's total cost function?

b) What is the Monopolist's Marginal Cost?

c) Complete the following table. In the first column, find the values for the Monopolist. In the second column, find the values if the market were instead perfectly competitive.

Monopoly Perfect Competition
Price
Quantity of Output
Consumer Surplus
Producer Surplus
Deadweight Loss
Lerner Index

Reference no: EM13238426

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