Question

I ONLY NEED HELP WITH "C". I PUT THE OTHER STUFF UP HERE IN CASE THE BACKGROUND INFO WAS NEEDED

I know that the answer is here. What I need help with isn't so much getting the answer as it is understanding how they got the answer.

1. Where did they find the TC' from? Also, where did the (qs^2)/8 come from? Where did that first TC equation come from in general? I'm looking for its origins in the question, but I can't find it

2. What is significant about the firms being price takers? How do they being price takers affect the equation/problem?

3. How did they figure out the industry supply curve?

4. How did they find the MC? Where did the necessary info come from?

5. What is that "N.B. q=(40/3)=(1/10)Q thing? I don't get what it is/why it's there
6. For "firm profits" how did TR go from "(40/3)Q" to "(40/3)^2" when the quantity is found to be "(400/3)"?

7. Please explain to me how they found the "TC" under the "Firm Profits". I can't figure out where that came from at all.

8. With this given info please explain how the market supply for Santa's services is found. Please also explain how we find out how much profit each firm makes (in terms of the Fixed fee "F"). Finally, please help me figure out what happened to consumer surplus?

11. (22 points) Suppose Mr. S. Claus operates a non-price taking firm (monopoly) providing Santa services (S) to department stores and private functions. Mr. Claus uses two inputs, Elf labor (E) and Christmas Cheer (C) which he purchases in perfectly competitive markets. His production function for the quantity of Santa services is S-4E C4 A. (7 points) Given a particular level of services Santa wants to provide, use the Lagrangian Multiplier method to find the cost minimizing input combination that accomplishes this. Use this to find Santa's Total and Marginal cost functions.-- E,G,A rG (G B. (4 points) Suppose the demand for Santa's services is Q 240-8P where P is the price Santa charges for a unit of services, if th price and quantity of services provided for a profit maximizing Santa. What is Santa's producer's surplus at that price and quantity? e unit price of elf labor and Christmas cheer are both $4, find the equilibrium 1 4 So A. π נוב?)- @v) no hktd (o, C. (6 points) Now suppose that Santa decides he is too old for the job. Instead of running the show he will sell a certain large number of franchises to people each willing to pay him a fixed fee F All franchisees are price takers in input and output markets. Suppose Santa initially sells 10 franchise licenses to entrepreneurs who each obtain access to the same production technology as Santa had (each has his production function and hence his short-run cost structure). Find the market supply curve for Santa Services as well as the new equilibrium quantity and price. How much profit does each firm make (in terms of the fixed fee F). What has happened to consumer surplus. Firm f TI: 쏴 lofニP0-8Pタ|P-ye Q.yeo 1. 3 교 f「.er-輿. F I Dhk: AS 교 1%-*) 二10方.!!

Answer 1

ol E Vy LO Le Lw 16 u using E。, co on TC,

xteps ера So, TC ー, an, price, taung market, on petect æmpennow,me ice tak um lovel tisliicn lads ho h, because ne parice i et at an 人101m tuinu normal anone Q te price becauar tmune ane mis aubra vehe a prtctaer sytem, im make cle ho Tange ma et m Uimes de 8