A Monopolist Faces a Market Demand Curve with a Constant

question 78

Multiple Choice

A monopolist faces a market demand curve with a constant elasticity of -2.The monopoly's production function is Q = 4L and its output price is given by p.What is the monopoly's marginal revenue product of labor function?

• A) MRP_L = 2p
• B) MRP_L = 4p
• C) MRP_L = 10 - 2p
• D) MRP_L = 5 + 3.5p

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