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Demand function of a competitive industry is : Px = 104 - Q where Q is total production of that industry. Production function for all firms at industry is q = L1/4K3/4. Wage per unit of labor (w) is 1 monetary unit and price per unit of capital (r) is 3. In short run in each of firms at industry there is a capital level of K=1.  It is asked: (a) In short run, calculate all cost curves of any firm at industry. b) In short run, determine market equilibrium that makes profit of each firm zero as well as number (n) of firms that would produce is this situation and obtain supply curve of industry. d) In long run calculate all cost curves of any firm at industry

Demand function of a competitive industry is : Px = 104 - Q where Q is total production of that industry. Production function for all firms at industry is q = L1/4K3/4. Wage per unit of labor (w) is 1 monetary unit and price per unit of capital (r) is 3. In short run in each of firms at industry there is a capital level of K=1.  It is asked: (a) In short run, calculate all cost curves of any firm at industry. b) In short run, determine market equilibrium that makes profit of each firm zero as well as number (n) of firms that would produce is this situation and obtain supply curve of industry. d) In long run calculate all cost curves of any firm at industry

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Course: Microeconomics
Demand function of a competitive industry is : Px = 104 - Q where Q is total production of that industry. Production function for all firms at industry is q = L1/4K3/4. Wage per unit of labor (w) is 1 monetary unit and price per unit of capital (r) is 3. In short run in each of firms at industry there is a capital level of K=1. 
It is asked:
(a) In short run, calculate all cost curves of any firm at industry.
b) In short run, determine market equilibrium that makes profit of each firm zero as well as number (n) of firms that would produce is this situation and obtain supply curve of industry.
d) In long run calculate all cost curves of any firm at industry.

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