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Question B:2 (5 points) Consider a simple economy with one output market for final goods and one input market for labor

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Question B:2 (5 points) Consider a simple economy with one output market for final goods and one input market for labor. At the labor market, the Marginal Revenue Product (MRP) for labor is decided by: MRP = 500 - 4L and the wage, w = 100 The output market can be described by an inverse demand for the final good: P = 900- 50 where total cost, TCo = 0,05(w. )? + 1100 and w. is the wage per unit of worker the output firm pay the monopoly union. Final assumptions: The input market and the output market are both monopoly markets. a) Calculate the profit maximizing behavior on input- and output markets. b) Show the solution in relevant graphs on both markets.