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1. A firm with a CD production function Q = 1.5K 0.5 L0.4 plans to produce 900 units of output per day. Assume the prices of labor and capital are $50 and $100 a day.
(a) What is the firm's least cost combination of factors for production of 900 units of output?
(b) Assuming no fixed cost, what is the market price of this good if this firm makes a $2,000 profit each day?
Which of the following would shift the aggregate demand curve to the right?
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Short sumary on price discrimination in the market structure - 150 words.
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