Explain how many units of labour will valentines hire

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Reference no: EM1362232

(ii) Valentines Restaurants has a monopoly in the town of Palmerston North. Its production function is Q = 10L, where L is the amount of labour it uses and Q is the number of meals produced. In order to hire L units of labour, Valentines must pay a wage of 10 + 0.1L per unit of labour. The demand curve for meals at Valentines is given by P = 41 - Q/1000.

a) What is the profit-maximising output for Valentines?

b) Explain how many units of labour will Valentines hire?

c) What wage per unit of labour will Valentines pay?

Reference no: EM1362232

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