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

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-money and pricesjaydeethe organizations

Assignment-Money and Prices Jaydee The organization's strategic plan you wrote about in Week 2 calls for an aggressive growth plan, requiring investment in facilities and equipment, growth in productivity, and labor over ...

Assignmentlearning objectives covered1explain 3 ways the

Assignment Learning Objectives Covered: 1. Explain 3 ways the statement of goals, application of rewards, and institution of discipline affect and motivate ethical behavior in individuals 2. Demonstrate how roles and aut ...

Economics and quantitative analysis assignmenttopic -

ECONOMICS AND QUANTITATIVE ANALYSIS ASSIGNMENT TOPIC - REGRESSION ANALYSIS Instructions - Background One of the biggest challenges in the higher education sector has been the recent growth of online universities. The Onl ...

Assignmentthe paper is to be a properly formatted apa paper

Assignment The paper is to be a properly formatted (APA) paper that I expect will take at least 5 pages to do properly. It is to take the material discussed in the course and apply it to some issue or observation in your ...

Assignmentinstructions the topic of the research paper will

Assignment Instructions: The topic of the research paper will be any disease or condition of the body. The paper must include a thorough description of the disease/condition; current statistics of those affected - epidem ...

1 a explain in clear language the economic inefficiency

1. a) Explain in clear language the economic inefficiency associated with adverse selection. b) The ACA (aka Obamacare) included an insurance mandate, which forces everyone to purchase insurance or face a penalty. Under ...

Microeconomics assignmentdiscussion forumnote the video has

Microeconomics Assignment DISCUSSION Forum Note: The video has Closed Captioning. To activate it, start the video, mouse over the bottom of the video and click on the CC icon, then select from the menu. This week's discu ...

Assignment questionsque1 why validation of the software

Assignment Questions: Que.1 Why validation of the software requirement is necessary? List some conditions that should be checked in the validation phase of software requirement. Que.2 Six Sigma is used to reduce the defe ...

Iowa elevatorsresponses will be in a compact format the

Iowa Elevators Responses will be in a compact format. The content of the papers should not exceed three pages in length, excluding the title page, executive summary, or any references. Title Page: Executive Summary: Give ...

  • 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