Specific monopolist, Microeconomics

Specific Monopolist:

  1. Suppose a monopolist firm, I-Tech, pays $500,000 in short-run costs for its capital and unskilled labor. Its only short-run decision, therefore, is to determine how many high-skilled workers, E, to hire.  I-Tech's production function is Q = f(E) = 100E.  I-Tech also faces a downward sloped demand for its output of Q = 12000 - 20p.  What is the equation for I-Tech's short-run labor demand curve?
  2. If the wage in a competitive labor market is $20,000, then what is the labor (E) demanded by I-Tech?
  3. If I-Tech adopted new production technology such that the production function became Q = f(E) = 250E, how many workers would they demand at the competitive wage of $20,000?

2.    Question on Graphing the Labor Supply Decision

a.    Graph a decrease in the wage when leisure is a normal good and the labor supply curve has a positive slope.

b.    Graph an increase in the wage when leisure is a normal good and the labor supply curve has a negative slope.

c.    Graph a decrease in the wage when leisure is an inferior good and the labor supply curve has a positive slope.

Posted Date: 2/23/2013 4:51:10 AM | Location : United States







Related Discussions:- Specific monopolist, Assignment Help, Ask Question on Specific monopolist, Get Answer, Expert's Help, Specific monopolist Discussions

Write discussion on Specific monopolist
Your posts are moderated
Related Questions

Elasticity of Demand This is a measure of how responsive the sales volume of goods is to changes in that product's price, equal to the marginal change in sales, divided by the

What do you mean by Consumption Set? Consumption Set: We notice a consumer faced along with possible consumption bundles within consumption set X. We generally assume that X

I have an article about 40 pages long that''s needs to be read and then a discussion question. The post has to be 35-40 lines. I will have to send/ attach the article

Determinants of Private Demand - Ability to Pay In a developing country like India, of all the factors determining investments in education, the most important factor is the ‘

The sole producer of the anti-diarrhea drug STOP supplies two retail pharmacies in an isolated village. The two pharmacies compete à la Cournot in a market characterized by an inve

what is iso curve

Change in consumer income: A change in consumer income may bring about a change in the quantity demanded of a good or service. However, the direction of change in quantity deman


Q. Show the Environmental Taxes? Environmental Taxes: Taxes which are imposed on particular activities, or particular products, which are considered to be especially damaging t