Microeconomics Answers

Does a perfectly competitive firm’s price equal marginal cost in the short run, long run, or both?

if output is produced according to q=4l+6k the price of k is 12 and the price of l is 20 then the cost minimizing combination of k and l cable to produce 96 units of output is?

Are indifference curves useless because it is difficult to derive them experimentally

Why is a likely to be worse off when a product that he or she consumes is ratoined

Consider an electricity market where there are three suppliers, each with constant marginal cost (a reasonable approximation in electricity generation). Firm 1 has a capacity of 200 at MC = 5. Firm 2 has a capacity of 100 at MC = 8. Firm 3 has a capacity of 100 at MC = 10.

1. Ifthethreefirmsarepricetakers(i.e.,behavecompetitively),whatistheindustrysupplycurve?
2. ComputetheequilibriumpriceandquantitywhenthemarketdemandisQ(P)=1000/P0.5.
3. Compute the equilibrium price and quantity when the market demand is Q(P) = 750/P0.5.
4. ComputetheequilibriumpriceandquantitywhenthemarketdemandisQ(P)=500/P0.5.

must a consumer purchase some quantity of each commodity to be in equilibrium?

production function Q=L,K

min cost of production is 4units and w=1unit and r=1unit.

What would be the value of Q(output)?

Question 1: Given the utility function u = Ax^ay^b subject to the budget constraint P_xx + P_yy = B, prove that at the point of constrained utility maximization the ratio of prices Px / Py must equal the ratio of marginal utilities MU_x/MU_y.

Question 2: Consider the utility surface for two goods A and B: U = AB - 2A² - B² + 14B

What is the maximum utility level achieved?

Show that in a market with incomplete information larger the volume of good purchased more is the gain from searching for a lower price?

Explain the different type search adopted by a consumer in market with incomplete information?

Indentify the condition for an individual member of a household to work entirely in household production?