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You are the manager of a business that operates as a Monopolist in the output market, and it has perfect competition in the local labour market.
The production function of the business is given by: Q = 10L.
As a Monopolist, the firm faces a market demand given by: P = 10,000 - 2Q.
The wage rate in the labour market is $10
a) Calculate the equilibrium number of units of labour employed in short run.
b) What is the advantage of being a Monopolist for a firm?
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