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Labour Demand with Perfect Competition in the Labour Market and Monopoly in the Output Market in Short Run.
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?
At 5% annual interest, the present worth of Q is $60. At the same interest rate, what would be the value of Q in 10 years?
China’s real GDP was 7,394 billion yuan in 2005 and 8,000 billion yuan in 2006. China’s population growth rate in 2006 was 0.5 percent. Calculate China’s economic growth rate and growth rate of real GDP per person in 2006.
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