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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
The Chinese government managed the value of the Chinese yuan relative to the US. Between 1995 -2005 the yuan was pegged to the dollar at a rate of 8.28 yuan per US. China's central bank is responsible for using monetary policy to defend the fixed ..
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