User Account

All Pages

1 complete the

Assignment Help Microeconomics
Reference no: EM13373656

1. Complete the following table:

Quantity

FC

VC

TC

AFC

AVC

ATC

MC

0

45

0

45

------

------

------

------

1

 

 

65

 

 

 

 

2

 

 

 

 

17.5

 

 

3

 

 

 

 

 

 

10

4

 

 

 

 

 

30

 

5

 

120

 

 

 

 

 

 2. Suppose a firm's production function is given by Q = L1/2*K1/2. The Marginal Product of Labor and the Marginal Product of Capital are given by:  MPL = K1/2/2L1/2, and MPK = L1/2/2K1/2. 

a) If the price of labor is w = 36, and the price of capital is r = 64, how much labor and capital should the firm hire in order to minimize the cost of production if the firm wants to produce output Q = 24?              

b) What is the firm's Total Cost function TC(Q)?                

c) What is the firm's marginal cost of production?

3. Suppose in the short run a perfectly competitive firm has variable cost = 3q2, and MC = 6q where q is the quantity of output produced.  Also, the firm has fixed cost F = 2500.    

a) If the market price of the product is 270, how much output should the firm produce in order to maximize profit?        

b) How much profit will this firm make?       

c) Given your answer to

b), what will happen to the market price as we move from the short run to the long run?

4. Suppose honey is produced in a beehive using bees and sugar. Each honey producer uses one beehive which she rents for $1/month.  Producing q gallons of honey requires spending q dollars on bees, and q2 dollars on sugar. 

a) What is the total cost of producing q units of honey for an individual honey producer?    

b) What is the average cost of producing q units of honey per month for an individual producer?     

c) In general, if the total cost of producing honey is a + bq + cq2, then the marginal cost of producing honey is b + 2cq.  Assuming each honey producer operates as a price-taker, what is the supply curve for an individual producer?     

d) Let Q be the total market supply, and q is the supply of an individual firm.  Therefore, q = Q/n where n is the total number of firms in the market. Determine an expression for the market supply curve.       

e) Suppose the demand for honey is given by Q = 45-P.  Also, suppose there are 20 honey producers in the market. What is the equilibrium price of honey?        

f) How much profit does an individual producer make?  Is this a long run equilibrium?

Reference no: EM13373656

Questions Cloud

1 suppose the yield to maturity on a 2 year treasury note : 1 suppose the yield to maturity on a 2 year treasury note was 4 while the yield on a 1 year note was 5. assume that
Now according to the psychoanalytic view the personality : now according to the psychoanalytic view the personality consists of three systems the id the ego and the superego.
1 economic data has shown a relationship between inflation : 1. economic data has shown a relationship between inflation and unemployment rates. what is this relationship called?
There are many theories of motivation each with something : there are many theories of motivation each with something to offer. biological theories center on instinct. for example
1 complete the : 1. complete the following
1explain how variables such as social interactions : 1.explain how variables such as social interactions cognitive processes environmental variables cultural context and
Correct the paragraphselectric car is just a newborn thing : correct the paragraphs.electric car is just a newborn thing that needs to be for a long time wait for people to accept
Stanley lynch investment group the stanley lynch : stanley lynch investment group the stanley lynch investment group is a large investment firm headquartered in new
Explore career tabs at wwwapaorg what two careers most : explore career tabs at www.apa.org what two careers most interested in and what two topics most interested in for

Reviews

Write a Review

Microeconomics Questions & Answers

  Explain the concept of externality in economics

Explain the concept of externality in economics? Give one example of a positive and a negative externality in Australia and what is Thorpe's marginal cost of GPA? Show and explain how his MC curve is derived.

  How the economic action help the economy to grow

A growing economy means that the economy is producing more and more "stuff", either because it has more resources (workers), or uses those resources more productively (smarter, better workers, working with better machines and systems).

  What can we predict about the future of our economy

Michael makes a great point. Economists often note that there is no such thing as a free lunch

  Label the price charged and the deadweight loss to society

Suppose that a natural monopolist was required by law to charge average total cost. On a diagram, label the price charged and the deadweight loss to society relative to marginal cost pricing. Briefly explain your diagram and comment on the results..

  Many copies of vista they like at the prevailing market pric

Now consider the problem of a retailer like Circuit City or Best Buy. Such retailers can sell as many copies of Vista they like at the prevailing market price of $200.

  Consider a demand curve of the form graph both curves using

Consider a demand curve of the form qd=20-2p where qd is the quantity demanded of goods and p is the price o the good. also consider a supply curve of form

  Explain the relationship between the magpie and the eagle

Explain the relationship between the Magpie and the Eagle and explain what would be the effect of a 10% increase in the income of the target market have on the demand for the Magpie

  It is well-known that cold air feels much colder

where f is the dimensionless function (which must have dimensionless arguments in order to be dimensionally consistent! - for any smooth function this can be proved via a Taylor series expansion)

  Explain systems failure to better capitalize on opportunitie

Describe the opportunities that might be available through better use of information technology (IT) in the U.S. health care system. What might explain the system's failure to better capitalize on these opportunities

  Organization in concept and practice

In some ways monitoring is easier in a partnership than a corporation, where shareholders monitor directors. In what ways is monitoring easier? In what ways is it not?

  Question 1a what is adverse selection how does it harm the

question 1a. what is adverse selection? how does it harm the economic process?b. what is moral hazard? what are its

  Economies and diseconomies of scale

Describe the factors that may cause economies and diseconomies of scale. Give an example of each. Describe the economic concept of the law of diminishing marginal returns. Please give an example. Why is this important?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd