Economics Answers

2. The (total) cost function is given by C = 50 + 60Q – 18Q2 + 2Q3
a. Write down the fixed cost function FC(Q).
b. Write down the variable cost function VC(Q).
c. Write down the marginal cost function MC(Q).
d. Write down the average fixed cost function AFC(Q).
e. Write down the average variable cost function AVC(Q).
f. Write down the average total cost function AC(Q).
g. Find the break-even point (Q and AC).
h. Find the shut-down point (Q and AVC).

Suppose the demand and supply of chickens is given by:

QD = 22,500 – 250P

QS = 5,000 + 100P

a. Find the equilibrium price and quantity.
b. Suppose a quota of 7,000 chickens in imposed. What will be the new equilibrium price? What is the loss to consumers? What is the net gain, if any, to producers?
1

2. The (total) cost function is given by C = 50 + 60Q – 18Q2 + 2Q3
a. Write down the fixed cost function FC(Q).
b. Write down the variable cost function VC(Q).
c. Write down the marginal cost function MC(Q).
d. Write down the average fixed cost function AFC(Q).
e. Write down the average variable cost function AVC(Q).
f. Write down the average total cost function AC(Q).
g. Find the break-even point (Q and AC).
h. Find the shut-down point (Q and AVC).
i. Draw a graph to illustrate AC, AVC, and MC functions for quantities Q on the interval between 1 and 10. Make sure you show (put the numbers there) where exactly the MC curve intercepts AVC and AC curves.
j. If the price is P = 60, calculate the profit-maximizing firm’s profit.

The wholesale price of large shell eggs peaked at $2.49 a dozen on May 29, up from $1.20 a dozen at the beginning of the year. (…) Avian flu, which first appeared in the United States in December, has devastated the nation’s turkey and laying hen flocks. (…) Trends like the Paleo diet, with its emphasis on protein, and the U.S.D.A.’s recent decision to remove limits on cholesterol from its Dietary Guidelines are creating a voracious appetite for eggs.

A company is doing well with a government subsidy, but long run the government captitalizes the subsidy. What does it mean to capitalize a subsidy and what is the outcome to the company?

Consider a perfectly competitive market in the short run, assume that the demand curve is given as shown below P=100-4Q, also you are told that the total cost is given as TC=50+4Q+2Q^2 and the marginal cost MC=4+4Q... what is the market equilibrium price and quantity?

Consider this, what if a third world country namely Afghanistan's governement starts making businesses such as copying samsung to produce smart phone and phone albeit on a lower level than samsung, copying companies such as nestle to make food products, or maybe walmart to make a store chain, if the get the marketing right and the quality right, wouldn't it skyrocket the GDP and the economy considering they make the marketing and expansion to international markets, I was thinking if the government sets a 50 mil$ budget just for making businesses, of couse considering the man wouldn't be corrupt himself?

Does it have any probability or feasibility?

Show the sum of elasticity of demand function is =0 what it's implication

Determine own price elasticity of demand if inverse demand is 1)P=1/(3+X)^2
X=2/8+P
X=P^4/3

Prove diagrammatically that a price floor reduces consumers surplus ? Please !