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A profit maximizing firm in perfectly competitive market structure has average revenue of 10, average variable cost of 10-2q+q^2 and total fixed cost of 200
À)find profit maximizing output
B) Calculate the maximum profit
C) what price is needed for the firm to stay in the market
Why was agriculturalsector declared as a critical industry and exempt from the hardest lockdown regulations
Pick a company with which you are familiar (preferably the one you wrote about for your first
paper), either by working for it or by a close family member working for it. Write a paper about it
with the following sections:
1. Introduction
2. Product -
3. Process -
4. Location -
5. Layout -
6. Human Resources -
e. Give an overview of compensation and incentives at your company. This does not
mean to give numbers which are confidential. It does mean to describe whether
employees are compensated by the hour, piecework, commission, knowledge, or
salary and whether there is an incentive plan such as profit sharing or gain sharing.
Does the compensation/incentive plan motivate the employees? Critique the plan.
f. What does your company do to fit the job to the worker (ergonomics)?
g. Describe your company’s safety program.
h. Discuss working conditions at your company.
i. Does your company use visual signals/aids for communication as described in the
visual workplace section? If so, describe.
Rate at which output increases when there is an increase in the input (labour) is called
(b) A farmer rents a fixed plot of land L which can be used to produce two crops, food crop y1 and fodder y2. The production functions (technology) of the two crops are given as follows:
y1= A L1^α K1^β 0< (α + β) < 1
y2= min [aL2 , bK2] a, b >0
The per unit rent for land L is t and the price per unit of capital K is r.
(c) Assume that the farmer wants to produce a fixed amount of fodder at a feasible level y2^0. He decides to allocate L2 amount of land for the cultivation of this crop. If the land constraint is exactly met, show how would you derive the cost function for food C1(.), and that of fodder C2(.) ?
(d) Check if the Shephard's Lemma holds for these cost functions.
(e) If the farmer gets additional land through land reform policy implementation by the state government and the assumption of land constraint is slightly modified as L1 + L2 < L, how does your answer to question (c) change? Explain.
Construct an edge worth box diagram and show how production, efficiency and
equilibrium is achieved in an economy
A firm operates two plants whose marginal cost schedules are , . It is a monopoly seller in a market where the demand schedule is , where q is aggregate output and all costs and prices are measured in £. How much should the firm produce in each plant, and at what price should total output be sold, if it wishes to maximize profits
Halo has an endowment of 30 units of labor (L) on an island, where the production functions are x=0.5Lx and y=0.25Ly. Halo must consume one unit of x with each unit of y. How much of (x,y) should Halo produce in this economy?
a) (5,5)
b) (7.5, 7.5)
c) (8,8)
d) (10.5, 10.5)
What is the effect on the market when suppliers under invest in their businesses
Two dairy farmers produce milk for a local town with local milk demand given by P = 300 - 3Q (P denotes price measured in Rands, Q denotes the quantity measured in liters). Both farmers have the same cost function given by TC = 150 + 2Q (where denotes output).
(a) Calculate the profits if farmer 2 decides to break the cartel agreement
(b) What if farmer 1 is a leader and farmer 2 a follower, determine the price, quantity and profits made by these two farmers.
