Question

Consider a firm using a 3-dimensional technology with long-run marginal cost function given by MC(q, w,...

Consider a firm using a 3-dimensional technology with long-run marginal cost function given by MC(q, w, r)

If d/dq[MC(q,w,r)] = 1/2 & MC(0,w,r) = 0

What is the elasticity of the quantity supplied with respect to the output price in the profit maximizing solution?

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Consider a firm using the production technology given by q = f(K, L) = ln(L^K) If...
Consider a firm using the production technology given by q = f(K, L) = ln(L^K) If capital is fixed at K = 2 units in the short run, then what is the profit maximizing allocation of output if the price of output and respective input prices of labor and capital are given by (p, w, r) = (2, 1, 5)?
Consider the following total cost function for an individual firm: C(q) = 10+ q + (1/4)q^2...
Consider the following total cost function for an individual firm: C(q) = 10+ q + (1/4)q^2 The industry demand is estimated to be: Q = 100 - P 1) Now suppose there is a monopolist facing the industry demand. Write down the monopolist's pro t function. 2) What is the equation of the monopolists marginal revenue function? Also, explain how the monopolist's marginal revenue function differs from the marginal revenue function of a firm in a long-run perfectly competitive market....
1. Consider a firm whose demand curve is given by Q = 300 – 2P and...
1. Consider a firm whose demand curve is given by Q = 300 – 2P and whose marginal cost is given by   MC = 70 + 3Q . a. determine the profit-maximizing output.    b. determine the profit-maximizing price.    c. suppose that demand increases to Q = 500 – 2P , while marginal cost remains the same.     what happens to the firm’s profit-maximizing price and output? (show your work) d. is this result similar to what would happen...
A perfectly competitive firm in the short run has Total Cost and Marginal Cost functions given...
A perfectly competitive firm in the short run has Total Cost and Marginal Cost functions given by TC(Q)=9+Q+Q2 and MC(Q)=1+2Q, respectively. The firm faces a price of P=$17. Determine the output that the firm will produce and the profit. Show the solution graphically.
a) Assume the firm operates in the monopoly market in the long run with the demand...
a) Assume the firm operates in the monopoly market in the long run with the demand function P = 100-Q and TC = 640 + 20Q with TC showing the total cost of production, Q and P respectively of output quantity and price. Using the information above, publish i) Total revenue function (TR) ii) Marginal revenue (MR) iii) Marginal cost function (MC) iv) Determine the level of price and quantity of production that maximizes profit v) Determine the amount of...
The demand for product Q is given by Q = 136 -.4P and the total cost...
The demand for product Q is given by Q = 136 -.4P and the total cost of Q by: STC = 3000 + 40Q - 5Q^2 + 1/3Q^3 A. Find the price function and then the TR function. See Assignment 3 or 4 for an example. B. Write the MR and MC functions below. Remember: MR = dTR/dQ and MC = dSTC/dQ. See Assignment 5 for a review of derivatives. C.What positive value of Q will maximize total profit?  Remember, letting...
The long run cost function for each (identical) firm in a perfectly competitive market is  C(q) =...
The long run cost function for each (identical) firm in a perfectly competitive market is  C(q) = q1.5 + 16q0.5 with long run marginal cost given by LMC = 1.5q0.5 + 8q-0.5, where  q is a firm’s output. The market demand curve is  Q = 1600 – 2p, where Q  is the total output of all firms and p  is the price of output. (a) Find the long run average cost curve for the firm. Find the price of output and the amount of output...
A resource firm faces the following demand function: P = 60 – 10Q. The marginal cost...
A resource firm faces the following demand function: P = 60 – 10Q. The marginal cost of extraction is $20. (MC = $20). Using the Inverse Elasticity Pricing Rule, calculate the profit maximizing output level and price.
Suppose a firm’s long-run production function is given by Q=K^0.25 L^0.25 ,where K is measured in...
Suppose a firm’s long-run production function is given by Q=K^0.25 L^0.25 ,where K is measured in machine-hours per year and L is measured in hours of labor per year. The cost of capital (rental rate denoted by r) is $1200 per machine-hour and the cost of labor (wage rate denoted by w) is $12 per hour. Hint: if you don’t calculate the exponential terms (or keep all the decimals when you do), you will end up with nice numbers on...
3: For each (identical) firm in a perfectly competitive market the long-run cost function is C(q)...
3: For each (identical) firm in a perfectly competitive market the long-run cost function is C(q) = q1.5 + 16q0.5 with long run marginal cost being LMC = 1.5q0.5 + 8q-0.5, where q = firm’s output. Market demand curve: Q = 1600 – 2p, where Q = total output of all firms, and p = price of output. (a) For the firm find the long run average cost curve , as well as the price of output and the amount...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT