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TC = 150 Q 3Q2 + 0.25Q3
Complete the following table by computing the total, average, and marginal costs associated with each quantity indicated.
Quantity
Total Cost
Average Cost
Marginal Cost
1
2
3
4
5
6
Explain how firms and individuals participate and interact in the product market and in the factor market.
1. Consider an industry in the U.S. facing aggregate (inverse) demand function:
p(y) = 1050 – 5y
The industry is currently in long run equilibrium. The market price is $225 and there are n = 11 firms producing. Each firm’s variable cost is:
cv(y) = [1] y3
a. What is each firm’s fixed cost?
Qd = 14-2P; Qs= 2+4P
ii) What factors cause the occurrence of an inverse demand curve
Compute the price elasticity of demand when P= 10, and comment on the elasticity of the good.
quantity rise, fall, or remain unchanged, or are the answers indeterminate because they depend on the magnitudes of the shifts? Use supply and demand diagrams to verify your
answers.
a. Supply decreases and demand is constant.
b. Demand decreases and supply is constant.
c. Supply increases and demand is constant.
d. Demand increases and supply increases.
e. Demand increases and supply is constant.
f. Supply increases and demand decreases.
g. Demand increases and supply decreases.
h. Demand decreases and supply decreases.
The value created by the collaboration between firms M and R is given by V = √eM + √eR, where eM andeR are the firms’ respective investments, in dollars. After the investments levels have been chosen, M and R divideV equally. (a)Determine the Nash equilibrium investment levels, and the consequent payoffs for each firm. (b)Suppose that M and R merge. Determine the optimal investment levels and the payoff for the merged firm. Do the firms benefit f rom the merger? Why, or why not?
#339914 on Dec 2023