Answer:
Question 5) Option D: MC= 3q^2-12q+26
Given C=1q^3-6q^2+26q+6
MC =dC/dq
MC= 3q^2-12q+26
AC=C/q
AC= q^2-6q+26+6/q
VC= 1q^3-6q^2+26q
AVC= VC/q =q^2-6q+26
please please help me! one long problem and some vocab (For this question you have 20...
Question 3 Long-run average total cost (LAC) O a represents the lowest average cost of producing a given level of output. b. is always equal to or greater than short-run average total cost. c. can be measured in the short-run. If a firm is producing the level of output at which long-run average cost equals long-run marginal cost, then a long-run marginal cost is at its minimum point b. long run average cost is at its minimum point. c long...
4) Suppose each firm's long run average cost curve, for positive levels of output, is given by AC 0.10.05Q+5/Q. The marginal cost curve is given by MC 0.+0.1Q. (a) Find the minimum efficient scale for the above cost function (b) What is the firm's minimum average cost? (c) Suppose you have many identical firms in a long run competitive equilibrium. Demand is P 13.1-0.040. What is the market quantity? How many firms are there? (d) Suppose demand increases to P...
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Throughout this problem assume that for an industry aggregate demand is given by QPp) = 180 - 20p Also, each firm in the industry has a production function of f(1,k)- Vik. Each firm has a short run capital stock of 100 units and 3. Initially, we 5. a. Find the firm's short run cost function C(q)- b. Find the firm's short run supply function ) o. Suppose there are 4 firms in the industry,...
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Suppose each firm's long run average cost curve, for positive levels of output, is given by AC = 0.1 + 0.05Q + 5/Q. The marginal cost curve is given by MC = 0.1 + 0.1Q. (a) Find the minimum efficient scale for the above cost function. (b) What is the firm's minimum average cost? (c) Suppose you have many identical firms in a long run competitive equilibrium. Demand is P = 13.1-0.04Q. What is the market quantity? How many firms...
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Q1: The following graph shows the current short-run average total cost (ATC), short-run marginal cost (MC), and long-run average cost (LATC) curves of a typical perfectly competitive firm that uses only labour and physical capital to produce its product and the current market price (PⓇ). S/unit MC ATC LATC B Pa E Q1 Q2 Quantity a) How many units of output would the firm choose to produce in the short run? Explain. b) Is the firm making an economic profit...
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