Microeconomic Theory
Microeconomic Theory
12th Edition
ISBN: 9781337517942
Author: NICHOLSON
Publisher: Cengage
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Chapter 10, Problem 10.3P

a)

To determine

To find:Firms long-run total, average and marginal cost function

b)

To determine

Firm’s short-run total, average and marginal cost function.

c)

To determine

Firm’s long-run total, average and marginal cost curves.

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Students have asked these similar questions
= Q5. A firm has the following fixed proportion production function q min(k, 21). a. Find the firms long-run total, average, and marginal cost functions. b. Suppose that k is fixed at 30 in the short run. Calculate the firms short-run total, average, and marginal cost functions. c. Suppose v = = 1 and w = 3. Calculate this firms long-run and short-run average and marginal cost curves.
Suppose the long-run production function for a competitive firm is f(x1,x2)= min {x1,2x2}. The cost per unit of the first input is w1 and the cost of the second input is w2. .d. Write down the formula and draw the graph of the average cost function, as a function of y. .e. Write down the formula and draw the graph of the marginal cost function, as a function of y.
Suppose the total cost function of a firm is given as: TC = 720 - 45Q + 2Q². Determine the average variable cost, average cost and marginal cost function. At what rate of output, average cost is minimized? How much is the minimum average cost for this firm? Draw a diagram to show the minimum point of average cost functions. a. b. d.
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