1. Find the equilibrium points for (Q, P1, P2) of the two commodity demand and supply market function below. The equilibrium condition may be summarized as Qdi = Qsi. Qd1 = 24 − 8P1 + 2P2 Qs1 = −6 + 12P1 Qd2 = 28 + P1 − 8P2 Qs2 = −6 + 2P2
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1. Find the equilibrium points for (Q, P1, P2) of the two commodity
Qd1 = 24 − 8P1 + 2P2
Qs1 = −6 + 12P1
Qd2 = 28 + P1 − 8P2
Qs2 = −6 + 2P2
2. A competitive firm has the short-run cost function C(y) = 12y3−8y2+30y+12. At what price will the firm agree to produce in the short-run? What is the shutdown condition for this firm?
3. The production function of a competitive firm is described by the equation y =2x11/26x21/2 . The factor prices are p1 = $3 and p2 = $4 and the firm can hire as much of either factor it wants at these prices. What is the firm’s marginal cost?
4. What is the
P = $4 and Qd = 1500 − P2
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