Ask Question, Ask an Expert


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

Discussion questionon the surface hinduism appears

Discussion Question On the surface, Hinduism appears radically different from Abrahamic religions like Islam and Judaism. However, Hindu teachings state that there is a single divine essence in the universe. Consider too ...

Discussioneconomic structuralism constructivism and

Discussion "Economic Structuralism, Constructivism, and Feminism" Please respond to the following From the second e-Activity, select the theory that you believe has the explanatory and predictive power regarding the conf ...

Short-run economic fluctuationscreate a 3 -slide microsoft

Short-Run Economic Fluctuations Create a 3 -slide Microsoft PowerPoint presentation that will be presented to the organization's Executive Committee. The presentation should cover the following items: • Identify the thre ...

Assignmentterm projectfor this course you will assume the

Assignment TERM PROJECT For this course, you will assume the role of a manager or legal advisor and create a PowerPoint presentation for an organizational employee meeting. The subject of the presentation will be complia ...

Discussion questionsummationplease respond to the

Discussion Question Summation Please respond to the following: • Reflecting back on everything you have learned in this course, discuss the single most important lesson any entrepreneur should apply in order to be succes ...

Assignmentdfds are process diagrams that emphasize the data

Assignment DFDs are process diagrams that emphasize the data consumed, produced, and stored by processes under discussion. Complex processes are decomposed into their constituent elements to reveal the most elemental sub ...

Assignment1 listidentify and discuss the various laws that

Assignment 1). List/identify and discuss the various laws that were broken. Identify and discuss ENRON's internal process of "Yank and Rank." What is meant by the term "cooking the books?" 2). List/identify and discuss t ...

Microeconomichow would a low-cost price leader enforce its

Microeconomic How would a low-cost price leader enforce its leadership through implied threats to a rival? How does a firm become a "low cost" price leader? Discuss the specific type of market structure that implied thre ...

Problem set 11 the table below contains typical economic

Problem Set 1 1. The table below contains typical economic data. It show the quantity of a good that is demanded by purchasers and the quantity supplied by producers at various prices. At which price are quantities deman ...

Assignmentmicroeconomicsdirections unless otherwise stated

ASSIGNMENT Microeconomics Directions: Unless otherwise stated, answer in complete sentences, and be sure to use correct English, spelling and grammar. Sources must be cited in APA format. Your response should be four dou ...

  • 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

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate