Economics: Private and Public Choice (MindTap Course List)
15th Edition
ISBN: 9781285453538
Author: James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher: Cengage Learning
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Chapter 22, Problem 8CQ
To determine
Short run and long run supply curves of a perfect competitive firm.
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Consider a firm with the following production function Q=5000L-2L2.a. Find the maximum production level.b. How many units of labour are needed at that point. c. Obtain the function of marginal product of labour (MRL)
d. Graph the production function and the MRL.
Exercise 4A firm has the following total cost function TC=100q-5q2+0.5q3.
Find the average cost function.
A firm has the following demand function P=200 − 2Q and the average costof AC= 100/Q + 3Q −20.a. Find the profit function. b. Estimate the marginal cost function. c. Obtain the production that maximizes the profit. d. Evaluate the average cost and the marginal cost at the maximising production level.
Chapter 22 Solutions
Economics: Private and Public Choice (MindTap Course List)
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