Homework Answers
Add Answer to:
2. Scotch is made by two firms: Glenmorangie and Macallan. The individual supply functions for Glenmorangie...
2. Scotch is made by two firms: Glenmorangie and Macallan. The individual supply functions for Glenmorangie...
2. Scotch is made by two firms: Glenmorangie and Macallan. The individual supply functions for Glenmorangie and Macallan are as follows: Glemnorangie:2P - 4 Macallan P -3 Derive the industry supply function for Scotch (Q). Show the supply curve in a diagram with P on the vertical axis and Q on the horizontal axis.
3. There are two types of firms in an industry. Type 1 firms have the costs...
3. There are two types of firms in an industry. Type 1 firms have the costs TC(n) = 625+ 0.25qi and type 2 firms have costs TC(2) 50000.52 The fixed costs for both types of firms are NOT sunk. (a) Derive each firm's ATC(g), AVC() and MC() functions and plot the curves on separate diagrams (b) Derive each firm's supply function q(p) and show the corresponding curves in the diagrams (c Suppose that there are 10 firms of each type....
Assume that there are two firms in an industry, each producing with a constant marginal cost...
Assume that there are two firms in an industry, each producing with a constant marginal cost function of MC = 10. Assume that the demand function for the product is defined as follows: Q = 200 – 2P. a) Derive the best reaction functions for both firms. (5 marks) b) Determine the cournot equilibrium quantities and cournot equilibrium price. (5 marks)
Short Run Cost Curves: Consider two firms, producing different products, with the following production functions: q=5KL...
Short Run Cost Curves: Consider two firms, producing different products, with the following production functions: q=5KL (1) q=5(KL).5 (2) a. For a short-run situation in which K=100, and given wage = 3 and cost of capital = 1, derive expressions short run total cost for each production function. (Start by using the production function to develop an expression for L in terms of q, and then substitute that, and the given parameters, into the generic expression for Total Cost =...
5. Prove that when the production function is homogeneous of degree one, it may be as...
5. Prove that when the production function is homogeneous of degree one, it may be as f(x) 2MP(x)x where MPi(x) is the marginal product of input i. Hint use Euler's Theorem. 6. Derive the cost function for the linear technology y f(xix2)-axi+bx 7. Given the production function fxi)aIxa In(x), derive the firm's supply function assuming an interior solution, assuming that a>0 and a 0. 8. Consider a duopoly facing an industry demand function, p-a-bQ, where Q tg respective cost functions...
200 5. Suppose you are given the following inverse demand function, p and the inverse supply...
200 5. Suppose you are given the following inverse demand function, p and the inverse supply Q+1 function, p=5+0.50. With p on the vertical axis and Q on the horizontal, draw these two functions. Also solve for the equilibrium Q* and equilibrium price p*. 6. Suppose the labour demand function is giverlas w = 18 - 1.6L and the labour supply function is given as w=6+0.4L. Determine the equilibrium wage and equilibrium number of workers algebraically. Draw the above labour...
Consider a market that faces the following market supply and demand functions Q^S = −2 +...
Consider a market that faces the following market supply and demand functions Q^S = −2 + 2p Q^D = 16 − p where identical firms face the total cost function of T C = 8 + 3q + 1/2q^2 a) What is the market price? b) Derive the average variable cost, average total cost, and marginal cost functions. c) In the short run, how much does each firm produce? d) In the short run, how much economic profit or loss...
2. (1.5 p) Consider perfectly competitive industry with identical firms. The long run average cots function...
2. (1.5 p) Consider perfectly competitive industry with identical firms. The long run average cots function of a typical firm is given by AC(q)- 24 - 49 + q. Market demand is given by c p)=100-2p. (a) Find the long run supply curve of the typical firm. (b) Find the number of firms in the industry in the long run equilibrium.
4. In the competit ve market for widgets there are 50 identical consumers and 200 iden tical firms. Each individual...
4. In the competit ve market for widgets there are 50 identical consumers and 200 iden tical firms. Each individual consumer has the following demand function for widgets P(P) 100 2P where qD is the quantity an individual consumes and P is the widget's price. Each firm has the following cost function: C() 100 2qq (a) (3 points) Find the market demand function for widgets QP(P). Find the industry supply function for widgets Qs(P), make sure to find each firm's...
5. (20 points) Consider there are four homogeneous firms with cost function C(a) = are considering...
5. (20 points) Consider there are four homogeneous firms with cost function C(a) = are considering whether to enter a market with demand P = 9-Q They 5q + 4 (a) Find two industry supply curves when there are one firm entered the market and two firms entered the market. (b) Draw the curves you found in (a) on a demand-supply diagram and mark these aggregate supply quantity (c) Should the third firm enter the market? Why or why not?...
2. Scotch is made by two firms: Glenmorangie and Macallan. The individual supply functions for Glenmorangie and Macallan are as follows: Glemnorangie:2P - 4 Macallan P -3 Derive the industry supply function for Scotch (Q). Show the supply curve in a diagram with P on the vertical axis and Q on the horizontal axis.
3. There are two types of firms in an industry. Type 1 firms have the costs TC(n) = 625+ 0.25qi and type 2 firms have costs TC(2) 50000.52 The fixed costs for both types of firms are NOT sunk. (a) Derive each firm's ATC(g), AVC() and MC() functions and plot the curves on separate diagrams (b) Derive each firm's supply function q(p) and show the corresponding curves in the diagrams (c Suppose that there are 10 firms of each type....
5. Prove that when the production function is homogeneous of degree one, it may be as f(x) 2MP(x)x where MPi(x) is the marginal product of input i. Hint use Euler's Theorem. 6. Derive the cost function for the linear technology y f(xix2)-axi+bx 7. Given the production function fxi)aIxa In(x), derive the firm's supply function assuming an interior solution, assuming that a>0 and a 0. 8. Consider a duopoly facing an industry demand function, p-a-bQ, where Q tg respective cost functions...
200 5. Suppose you are given the following inverse demand function, p and the inverse supply Q+1 function, p=5+0.50. With p on the vertical axis and Q on the horizontal, draw these two functions. Also solve for the equilibrium Q* and equilibrium price p*. 6. Suppose the labour demand function is giverlas w = 18 - 1.6L and the labour supply function is given as w=6+0.4L. Determine the equilibrium wage and equilibrium number of workers algebraically. Draw the above labour...
2. (1.5 p) Consider perfectly competitive industry with identical firms. The long run average cots function of a typical firm is given by AC(q)- 24 - 49 + q. Market demand is given by c p)=100-2p. (a) Find the long run supply curve of the typical firm. (b) Find the number of firms in the industry in the long run equilibrium.
4. In the competit ve market for widgets there are 50 identical consumers and 200 iden tical firms. Each individual consumer has the following demand function for widgets P(P) 100 2P where qD is the quantity an individual consumes and P is the widget's price. Each firm has the following cost function: C() 100 2qq (a) (3 points) Find the market demand function for widgets QP(P). Find the industry supply function for widgets Qs(P), make sure to find each firm's...
5. (20 points) Consider there are four homogeneous firms with cost function C(a) = are considering whether to enter a market with demand P = 9-Q They 5q + 4 (a) Find two industry supply curves when there are one firm entered the market and two firms entered the market. (b) Draw the curves you found in (a) on a demand-supply diagram and mark these aggregate supply quantity (c) Should the third firm enter the market? Why or why not?...
Most questions answered within 3 hours.
-
Using α = 0.05, test if the mean weight change
is less than 0 if a...
asked 2 minutes ago -
In an isobaric compression process, the volume of steam is
reduced from 1 Mpa and 773...
asked 2 minutes ago -
blood glucose level for obese patient population have
a mean of 100 with a standard deviation...
asked 3 minutes ago -
Which of the following mutations is MOST likely to be
recessive?
A.
Deletion of a haplo-insufficient...
asked 6 minutes ago -
The U.S. Department of Transportation, National Highway Traffic
Safety Administration, reported that 77% of all fatally...
asked 19 minutes ago -
For 1 through 11, create an expression using the relational
operators, the logical operators, and variable...
asked 32 minutes ago -
Remove all recursion from the following grammar:
S -> Aa | Bb
A -> Aa |...
asked 25 minutes ago -
The production budget for Manner Company shows units to be
produced as follows: July, 550; August,...
asked 35 minutes ago -
Your group is required to develop a comprehensive Business plan
that will be used as a...
asked 39 minutes ago -
a radio station transmits at 78.1 mhz. a hz is an inverse
second. how far apart...
asked 58 minutes ago -
Write the equilibrium expression for the dissociation in
water for CH5N, C2H5O2COOH, H3AsO4, KClO2, HC2H2ClO2.
asked 1 hour ago -
In risk management, insurance is an example of:
Select one:
a. Risk avoidance
b. Risk deflection...
asked 1 hour ago