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

Assignmentfor this assignment write a paper describing how

Assignment For this assignment, write a paper describing how an analysis of intrusion signatures could be conducted for your project organization. Include the following in your paper: • A description of signature analysi ...

Application evaluation of research resultsno research

Application: Evaluation of Research Results No research project or study is perfect. Studies that contain errors can produce unreliable or misleading results. As a consumer of research, you must be able to determine the ...

Scenario descriptionbigjet plans to launch a weekly flight

Scenario Description Bigjet plans to launch a weekly flight on a long-haul route. It faces four sets of decisions corresponding to short-run, medium-run, long-run, and very long-run operations. Short Run: In the short ru ...

Need someone to help with the belowthe theory of market

Need someone to help with the below The theory of market economies emphasizes freedom of choice and limited government intervention. The classic argument for government intervention is market failure - the inability of t ...

Project-listen to this video asafter you work on your graph

Project- Listen to this video as/after you work on your graph. The lecture is on the 'Aftermath of the Financial Crisis' given by Ben Bernanke in March 29 th 2012. https://www.c-span.org/video/?305198-1/ben-bernanke-lect ...

Task list principles of microeconomicsyou are starting

Task List: : Principles of Microeconomics You are starting your own Internet business. You decide to form a company that will sell cookbooks online. Justcookbooks.com is scheduled to launch 6 months from today. You estim ...

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 ...

Assignment1laura just opened a coffee shop in nyc named

Assignment 1. Laura just opened a coffee shop in NYC named Squirrel Coffee. Hoping to cater to the hipsters, she sells a special kind of cold brew infused with nitrogen, which she dubs ‘nitro coffee'. Assume for the purp ...

Discussion questionplease read thoroughly and provide

Discussion Question Please read thoroughly and provide references • Manufactures of smartphones design products to be interactive with consumers. To remain competitive, designers are focused on getting a new product to m ...

Assignmentin this assignment you must break a norm this

Assignment In this assignment, you must break a norm. This breach must be done in a public forum. You will be writing an essay about your experiment, in which you must be sure to answer all of the questions listed in thi ...

  • 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