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Homework answers / question archive / The market demand function for shield in the competitive market is = 200,000 − 1,000
The market demand function for shield in the competitive market is = 200,000 − 1,000 .
Each shield requires 1 unit of Vibanum (V) and 1 units of labor (L). The wage rate is constant at $40 per unit. Suppose all Vibanums are produced by a monopolist with constant marginal costs of $20 per Vibanum.
What price, , does the monopolist charge for the Vibanum ?
What price would it charge for shield if it vertically integrated into the shield market?