Profit maximizing output for rabelaisian restaurants

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Rabelaisian Restaurants gas a monopoly in the town of Upper Glutton. Its production function is Q = 40L, where L is the amount of labor it uses and Q is the number of meals produced. Rabelaisian Restaurants finds that in order to hire L units of labor, it must pay a wage of 40 + .1L per unit of labor. The demand curve for meals at Rabelaisian Restaurants is given by P = 13.75 - Q/1,000. The profit maximizing output for Rabelaisian Restaurants is

a. 12,000 meals

b. 1,000 meals

c. 6,000 meals

d. 1,500 meals

e. 750 meals

Reference no: EM131431741

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