Suppose that Jessica faces the following total cost function: C(y) = 2y2 + y + 200 Note that 200 denotes the fixed cost...
Suppose that Jessica faces the following total cost function: C(y) = 2y2 + y + 200 Note that 200 denotes the fixed cost component. Use this information in answering this part of the submission question. (a) Find the Marginal cost function, Average Cost function, Average Variable cost function and the Average fixed cost function. Once you obtain these, sketch them on the grid below. (b) Derive the short run supply function for Jessica. Suppose p = 61. How much y...
Suppose that Jessica faces the following total cost function: C(y) = 2y2 + y + 200 Note that 200 denotes the fixed cost component. Use this information in answering this part of the submission question. Derive the long run supply function for Jessica. Suppose p = 61. How much output does Jessica supply in the long run? What is Jessica's profit (i.e. total revenue less total costs) in the long run?
Suppose that Jessica faces the following total cost function: C(y) = 2y2 + y + 200 Note that 200 denotes the fixed cost component. Use this information in answering this part of the submission question. (a) Find the Marginal cost function, Average Cost function, Average Variable cost function and the Average fixed cost function. Once you obtain these, sketch them on the grid below. (c) Derive the long run supply function for Jessica. Suppose p = 61. How much output...
Question 2: Supply Suppose that Jessica faces the following total cost function: C(y) = 2y2 + y + 200 Note that 200 denotes the fixed cost component. Use this information in answering this p submission question. (a) Find the Marginal cost function, Average Cost function, Average Variable cost functi Average fixed cost function. Once you obtain these, sketch them on the grid below. AC, AVC, AFC, MC (b) Derive the short run supply function for Jessica. Suppose p = 61....
Suppose that Jessica faces the following total cost function: C(y) = 2y2 + y + 200 Note that 200 denotes the fixed cost component. Use this information in answering this part of the submission question. (a) Find the Marginal cost function, Average Cost function, Average Variable cost function and the Average fixed cost function. Once you obtain these, sketch them on the grid below. Show that the MC curve intersects the AVC curve and the AC curve at the minimum...
Suppose the short run cost function for a competitive firm is C(Y)= 4Y2+ 200 where Y is the total output. Find the profit maximizing supply for the firm if the output price is $16 and the maximum profit. What is its short run decision: To produce or not to produce?
Suppose the production function is given as ? = √??. Suppose also that the price of labor ? = 10 and the price of capital ? = 40 1) Derive the equation of the isoquant corresponding to this production function? 2) What type of return to scale does this production exhibit? 3) Does this production function exhibit a diminishing MRTS? Why? 4) Based on this production function, is the law of diminishing marginal returns satisfied? 5) Derive the demand curves...
Suppose the production function is given as Q = VLK. Suppose also that the price of labor w = 10 and the price of capital r = 40 1) Derive the equation of the isoquant corresponding to this production function? 2) What type of return to scale does this production exhibit? 3) Does this production function exhibit a diminishing MRTS? Why? 4) Based on this production function, is the law of diminishing marginal returns satisfied? 5) Derive the demand curves...
A monopolist who sells toys faces the following demand: P(y)=100-2y. The total cost function of the monopolist is given by: c(y)=20y+10y2 . a) Find the price and quantity that maximizes the monopolist’s profit. Also calculate the profit. [3+3] b) If the monopolist can do a perfect price discrimination, then find the consumer and producer surplus.
A monopolist has a cost function given by c(y) = y and faces an inverse demand curve given by P(y) = 156.00 - y, where P is the per-unit price and y is the quantity of output sold. Assume this monopolist cannot discriminate and charges a single price. What is the profit-maximizing level of output? What is its profit-maximizing price? $ Part 2 (2 points) See Hint Assume you want to choose a price ceiling for this monopolist so as...