Universal Gadgets (UG) is a firm with the cost function is given by C(q) = 20...
Universal Gadgets (UG) is a firm with the cost function is given by C(q) = 20 + 50q − 3q^2 + 0.1q^3 where q is the total quantity produced by the firm.
Assume from now on that UG is a profit-maximizing, perfectly competitive firm operating in a market with the market price p (p>0).
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Write down the optimization problem of UG.
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Write down the first order condition(s). Do not solve it/them yet!
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Use the first order condition(s) and the Implicit Function Theorem to find the derivative of the supply function with respect to the market price. (Remember, you have to calculate this derivative without deriving the formula for the supply function!).
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Finally , find the supply function of UG, and use it to check your answer to question 3.
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Write down the second order condition(s) and check if it/they are satisfied.
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How much would UG produce if p=30? How much would UG produce if p=25?
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Assume now that p=30 and UG is not allowed to produce more than 15 units. Investigate the possibility of a corner solution q=15. Do not forget to write down and check the first order condition.
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Universal Gadgets (UG) is a firm with the cost function is given
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please help me to solve question #6 to #12. best wishes. Universal Gadgets (UG) is a...
please help me to solve question #6 to #12. best wishes.
Universal Gadgets (UG) is a firm with the cost function is given by 20 50q 3q 0.1q C(q) + where q is the total quantity produced by the firm. Assume (for questions 1 to 5) this firm aims to minimize its average cost. 1. Write down the optimization problem of UG. 2. Write down the first-order derivative condition(s) 3. Find the value(s) of q that satisfy the first-order condition(s)...
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A monopolist has a production function 27 (L-2)(K+1) Q(L,K) where L, Kis the amount of labor...
A monopolist has a production function 27 (L-2)(K+1) Q(L,K) where L, Kis the amount of labor and capital. The wage rate is denoted by w and the rental rate of capital is denoted by r. The inverse demand function the monopolist is faced with is given by P = 12- 3Q where P is the market price and Q is the quantity sold. 13. Write down the optimization problem of the monopolist. 14. Write down the first order condition(s) 15....
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please help me to solve question #6 to #12. best wishes.
Universal Gadgets (UG) is a firm with the cost function is given by 20 50q 3q 0.1q C(q) + where q is the total quantity produced by the firm. Assume (for questions 1 to 5) this firm aims to minimize its average cost. 1. Write down the optimization problem of UG. 2. Write down the first-order derivative condition(s) 3. Find the value(s) of q that satisfy the first-order condition(s)...
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A monopolist has a production function 27 (L-2)(K+1) Q(L,K) where L, Kis the amount of labor and capital. The wage rate is denoted by w and the rental rate of capital is denoted by r. The inverse demand function the monopolist is faced with is given by P = 12- 3Q where P is the market price and Q is the quantity sold. 13. Write down the optimization problem of the monopolist. 14. Write down the first order condition(s) 15....
What is the level of profit? Profit equals $_______________
Suppose that a firm's production function is q=4x0.5 in the short run, where there are fixed costs of $2,000, and x is the variable input whose cost is $800 per unit. What is the total cost of producing a level of output q? In other words, identify the total cost function C(q). The total cost of producing a level of output q is O A. C(q) = 2,000 + O B....
2) The cost function for Acme Laundry is C(q) = 10 + 10q+q?, where q is tons of laundry cleaned. Assume that the market is perfectly competitive. a. What q should the firm choose to maximize its profit if the market price is p? How much does it produce if p=50? b. Assume that the government imposes a per unit tax of r =2. How much should the firm produce to maximize its after-tax profit if the market price is...
Suppose we have a market demand Q = 18 – P and a cost C(Q) 9) = 3Q?. Suppose that that firm 2 that invests in a new technology that changes it cost structure from firm 1. Market demand is still Q = 18 – P, firm 1 still faces costs 1 f(0) == Q}, and now firm 2 has costs, C3(Qx) = 23. Consider a Cournot model again. a. What is firm 1's best response function? b. Set up...
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