Bundle: Microeconomics, 13th + Aplia, 1 Term Printed Access Card
13th Edition
ISBN: 9781337742535
Author: Roger A. Arnold
Publisher: Cengage Learning
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Chapter 13, Problem 5QP
To determine
Reasons for the horizontal supply curve of the firm and upward sloping supply curve of an industry.
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What are the parameters of the problem? Find the conditional factor demand functions. Label them l(w,r,y) and k(w,r,y).Find the cost function: c(w,r,y). What is its interpretation?
The graph shows the Cost curves for a profit maximizing firm in a competitive market. If the market price is $30 and the firm produces at the profit maximum quantity, what is the amount of the total fix cost
Complete the following table by selecting the term that matches each definition on the left. Assume a perfectly competitive firm.
Chapter 13 Solutions
Bundle: Microeconomics, 13th + Aplia, 1 Term Printed Access Card
Ch. 13.1 - Prob. 1STCh. 13.1 - Prob. 2STCh. 13.1 - Prob. 3STCh. 13.1 - Prob. 4STCh. 13.2 - Prob. 1STCh. 13.2 - Prob. 2STCh. 13.2 - Prob. 3STCh. 13.2 - Prob. 4STCh. 13 - Prob. 1QPCh. 13 - Prob. 2QP
Ch. 13 - Prob. 3QPCh. 13 - Compare the firms least-cost rule with how buyers...Ch. 13 - Prob. 5QPCh. 13 - Prob. 6QPCh. 13 - Prob. 7QPCh. 13 - Prob. 8QPCh. 13 - Prob. 9QPCh. 13 - Prob. 10QPCh. 13 - Prob. 11QPCh. 13 - Prob. 12QPCh. 13 - Prob. 13QPCh. 13 - Prob. 14QPCh. 13 - Prob. 15QPCh. 13 - Prob. 16QPCh. 13 - Prob. 1WNGCh. 13 - Prob. 2WNGCh. 13 - Prob. 3WNGCh. 13 - Prob. 4WNGCh. 13 - Prob. 5WNG
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- A firm's technology is characterized by a Cobb - Douglas production function of the form 1 1 y = f(K,L) = 2K² + 1² a. The output price is p, and the input prices are r and w for K and L, respectively. Set up the problem for a profit - maximizing firm and solve for the factor demand functions for K and L. b. Find the firm's supply function. c. Find the firm's profit function. d. Assume now that p = 2, r = 1, and w = 1. Using the functions you have found in parts (a), (b) and (c), calculate the profit - maximizing levels of the factors and (K* and L*), the profit - maximizing output level (v) and the maximum profit of the firm (). Please solve it by explaining and explaining.arrow_forwardAssume a firm is trying to maximize output subject to a budget and is currently in the long run equilibrium shown below. Make changes to the graph to show the impact of a decrease in the wage. Make sure that the graph shows the new output-maximizing combination as well as the new levels labor and capital.arrow_forwardI got this question wrong because it was incomplete. Another option is correct, which one is it? For a firm that is not in perfect competition, why does the MRP slope downward? (mark all that apply) Because it is assumed that worker productivity declines due to on-the-job exhaustion Because as firms hire more workers, they face the law of diminishing marginal returns Because firms have to decrease their prices to sell more, which decreases MRP Because firms can charge higher than market prices for their products The MRP is actually horizontal, not downward slopingarrow_forward
- According to macroeconomic theory, in a perfectly competitive market a company: Group of answer choices is a cost maximizer. is a price searcher. is a price taker. is a quantity taker.arrow_forwardEach firm in a perfectly competitive industry has the following production function: q = K1/4L1/4 Each firm takes factor prices as given. Factor prices are r = 4, w = 16 Suppose the market demand is given by QD = 900 − P How many firms are there in the industry in the long run?arrow_forwardIn the short run, a tool manufacturer has a fixed amount of capital. Labor is a variable input. The cost and output structure that the firm faces is depicted in the table below. Assume the product price is $6. Calculate the marginal revenue product and the marginal resource cost, and then complete the table. Instructions: Enter your answers as whole numbers. Quantity of Labor Marginal Product Marginal Revenue Product ($) Hourly Wage Rate ($) Marginal Resource Total Product Total Labor Cost ($) (Labor) Cost ($) 10 400 90 11 416 16 12 132 12 430 14 15 180 13 442 12 18 234 14 452 10 21 294 15 460 8. 24 360 The equilibnum wage rate ($) 3 The equilibrium level of labor use = workersarrow_forward
- The production function of a competitive firm is described by the equation y = 1/2, 1/2 2.x26x. The factor prices are pi $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?arrow_forwardMarket demand is P = 50 -2Q. Firm has cost function TC(Q) = 5 + 2Q + Q^2. Can firm function as a price taker?arrow_forwardIn the short run, a tool manufacturer has a fixed amount of capital. Labor is a variable input. The cost and output structure that the firm faces is depicted in the table below. Assume the product price is $4. Calculate the marginal revenue product and the marginal resource cost, and then complete the table. Instructions: Enter your answers as whole numbers. Quantity of Labor Marginal Product Marginal Revenue Hourly Wage Rate ($) Marginal Resource Total Product Total Labor Product ($) Cost ($) (Labor) Cost ($) 10 400 5 50 es 11 420 20 8. 88 12 438 18 11 132 13 454 16 14 182 14 468 14 17 238 15 480 12 20 300 The equilibrium wage rate ($) = The equilibrium level of labor use = workersarrow_forward
- Consider a firm's short-run and long-run supply curves, pictured below. In the short run, one of the inputs to production is fixed. Suppose you know that, at an output of nine units, the fixed factor of production associated with the short-run marginal cost is at its optimal level. You also know that the long-run marginal cost of producing nine units is $9. Using the drag tool, place both the short-rur and the long-run supply curves into their correct positions within the graph. (Once you have made the necessary move(s), both supply curves should be entirely within the graph.) To refer to the graphing tutorial for this question type, please click here 15 54 13 3 2 1 7 OF 9 QUESTIONS COMPLETED 6554 SUBMIT ANSWEarrow_forwardA10arrow_forwardConsider a firm with 1 input and 1 output and a productionfunction given by f(x) = x1α with α < 1. The cost of the input is c and the price of the output is p. Write down the profit function and the first-order conditions associated with profit maximization. Find the factor demand, x*(p, c), the supply function, q*(p, c), and the profit function, π*(p, c).arrow_forward
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