1assume that a firm has a total product curve given by q

Reference no: EM13372761

1. Assume that a firm has a Total Product curve given by Q = 2KL.

(a) Graph the total, marginal, and average product curves assuming that K=2.

(b) Does this TP curve exhibit diminishing marginal returns? Explain.

2. Using the Total Product curve Q = 2KL with K=2, answer the following questions:

(a) Assuming that w = 3 and r = 5, graph the Total Cost, Variable Cost, Fixed Cost, Average Total Cost, Average Variable Cost, Average Fixed Cost, and Marginal Cost curves.

(b) Does the TC curve exhibit diminishing marginal returns? Explain.

(c) What happens to Marginal Cost if r decreases to 2? Explain.

3. A firm has two production processes with the following marginal cost curves: MC1 = Q1 and MC2 = 3000 + :5Q2.

(a) If the firm wants to produce 20,000 units, how will it distribute production between process 1 and process 2?

(b) What is the largest quantity the firm can produce where the cost minimizing choice is to produce everything with production process 1?

4. Assume that the shoe industry is perfectly competitive. All firms in the market are identical, with TC = 50 + 2Q + 2Q^2, and MC = 2 + 4Q. The market supply curve is given by P = (Q/25) + 2 and the market demand curve is P = 2000 - Q.

(a) How much will each firm produce?

(b) What is the shut-down price for the firm?

(d) What do you expect to happen in the long-run?

Reference no: EM13372761

Questions Cloud

C 200 08y - twhere c consumption expenditure i : c 200 0.8y - twhere c consumption expenditure i investment g government expenditure y ntional expenditure t

Yu are interested in estimating the following modely : you are interested in estimating the following modely aoa2x2 a2x2uhowever you have detected an exact linear

Explain why for a country having full employment of its : explain why for a country having full employment of its resources an increase in production of public sector goods can

Market structure - principles of microeconomicsyou have : market structure - principles of microeconomicsyou have been hired as a consultant by your local mayor to look at the

1assume that a firm has a total product curve given by q : 1. assume that a firm has a total product curve given by q 2kl.a graph the total marginal and average product curves

Write a paper that addresses the followingprovide reasons : write a paper that addresses the followingprovide reasons for believing in the accuracy or inaccuracy of sensory

Discuss why would cash transfers typically be preferred by : discuss why would cash transfers typically be preferred by recipients over in-kind transfers? what are the pros and

The next three questions refer to the graph belownbsp : the next three questions refer to the graph below.nbsp assume that the premigration labor force in country a is a and

1 distinguish between the benefits-received and the : 1. distinguish between the benefits-received and the ability-to-pay principles of taxation. which philosophy is more

User Account

All Pages