Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Microeconomics Expert

problem 1: Are each of the following assedions TRUE, FALSE, or UNCERTAIN? describe your answers with the broadest possible exception (if any), using graphs if possible.

a) If a firm is operating with constant marginal cost, it will also have constant average cost.

b) If marginal cost is increasing, average cost will also be increasing.

c) If a product requires two inputs for its production, and if the prices of the two inputs are equal, profit maximization requires that these inputs be used in equal amounts.

d) If a firm is operating at minimum short-run average cost, it is also operating at a point on its long-run average cost curve.

e) Long-run average cost can never exceed short-run average cost.

f) Long-run marginal cost can never exceed shoft-run marginal cost.

problem 2: A  firm has the given production function: Q = K1/2L1/2

It pays wages @ $5/hour, rents capital @ $l0/hour, has 25 units ofcapital, and can sell any amount of output $4/unit. How much output should the firm produce, with what combination of inputs, and how much profit will the firm earn?

problem 3: A  firm has a short-run production function defined by: Q = -.02L2 + 8L.

What is the short run demand curve for labor (L) in terms of the market wage rate (w), if the firm can sell all its output at $5 per unit?

problem  4: A firm's technology is defined by the production function: Q = 9K2/3L1/3.

It pays wages @ $18,hour (w) and rents capital @ $36/hour (r).

The demand for its goods is given by the demand function: Q = 240 - 10P.

a) What is the firm's marginal rate of technical substitution (MRTSKL), optimal condition in the product market, optimal inputs in terms of its optimal output, cost constraint in terms of its optimal output (TC), and marginal cost function (MC)? What is its demand function in terms of Q, its total revenue (TR) and marginal  revenue (MR)  functions?

b) What  is the firm's profit-maximizing levels of price (P*), output (Q*), capital (K*), labor (L*), and profit (t*)?

c) What is the firm's revenue-maximizing levels of price (P), output (Q), and profit (r)? Which of (b) or (c) is better?

problem 5: A firm's production function is: Q = K1/2L1/2 and  the demand  for its oulput  is: Q = 300 - 10P.

a) lf the firm's wage rate is $10/hour and capital  rental rate  is $2.50 per hour, what are its optimal output, inputs, price and profit?

b) If now the wage rate rises to $22.50, what will be its output, inputs, price and profit?

c) describe this change in terms of output and factor substitution effects.

d) Are these normal or inferior inputs?

problem 6: A firm in a perfectly competitive industry has this cost function: TC : 2700 + 3q2

a) If market demand is QD: 1500 - 5P, what is an individual firm's optimal price, output, and profit? What is the industry's total price and output? How many firms are there in the industry?

b) Now, if demand increases to QD= 2400 - 5P, what is the short-run optimal pdce, output and profit per firm, total industry output and number of firms in the industry?

c) What happens in the long-run?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M91357
  • Price:- $90

Guranteed 48 Hours Delivery, In Price:- $90

Have any Question? 


Related Questions in Microeconomics

Assignmentselect and review an inspection report posted on

Assignment Select and review an inspection report posted on the OSHA website. The inspection reports can be searched by industry group or establishment name by accessing the reports through the OSHA's Statistics & Data P ...

Discussion questionsi need 3 different discussion to be

Discussion Questions I need 3 different Discussion to be answered, by replying to what the student wrote. I'll forward the Discussions as we agree to shake hands. Word counts asnwer question no more than 100 words if mor ...

Assignmentfirms use inputs workers machinery natural

Assignment Firms use inputs (workers, machinery, natural resources) to produce outputs (goods and services). For example: General Motors uses steel, rubber and other materials to create automobiles. A pizza restaurant tu ...

Description of assignmentreport paper basisstudents work

Description of Assignment: Report Paper basis. Students work together to research and profile a particular in Microeconomic policy: the property tax in the United States. Grading Criteria (What constitutes a good assignm ...

Econ discussionwith everything discussed with this course

Econ discussion With everything discussed with this course, first watch How we can make the world a better place by 2030. Then, offer your considerations as to whether this could work or not. Within your response, provid ...

Discussion questionconsider a group of documents that has

Discussion Question Consider a group of documents that has been selected from a much larger set of diverse documents so that the selected documents are as dissimilar from one another as possible. If we consider documents ...

Q1 in quantity theory of money model mv py assume that v

Q1. In quantity theory of money model, MV = PY, assume that V is constant, M is growing at 6% per year, Y is growing at 3%. a. If r = 2, what is i? b. If the Fed reduces the money growth rate by 2% points per year, what ...

Short-run economic fluctuationsplease have by 800 pm west

Short-Run Economic Fluctuations Please have by 8:00 pm west coast time cailfornia time 12/13/2016. Plagrism free, orignal work, and refs. APA format double space. please ask questions right away please dont wait to the l ...

Essay questionyour manager knows that you have completed a

Essay Question Your manager knows that you have completed a course in Purchasing and Materials Management. Your manager would like you to write an essay for your fellow workers about the key purchasing/ supply management ...

Assignment production cost analysis and estimation applied

Assignment: Production Cost Analysis and Estimation Applied Problems Please complete the following two applied problems: Problem 1: William is the owner of a small pizza shop and is thinking of increasing products and lo ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro