Question 1

Suppose that Dent Carr's long-run total cost of repairing s cars per week is c(s) = 2s² + 50. If the price he receives for repairing a car is $8, then in the long run, how many cars will he fix per week if he maximize profits?

Accepted Answer

B

Question 2

A firm has a long-run cost function, C(q) = 3q² + 108. In the long run, this firm will supply a positive amount of output, as long as the price is greater than

Accepted Answer

In the long run, the firm will supply a positive amount of output when the price is greater than the minimum of its long-run average cost curve (LRAC). To find the minimum of the LRAC, we need to take the derivative of the cost function with respect to q, set it equal to zero and solve for q: dC(q) / dq = 9²q-1 = 0 => q* = (S1S1 /(9U1P12P0)) Plugging in q* back into the cost function, we get: C(q*) = 3(S1S1 /(9U1P12P0))² + 108 = (S1S1 )^(2/3) * (P0 /U1^(2/3)) * 9^(1/3) + 108 Therefore, the minimum of the LRAC occurs at C(q*)/q* = [(S1S1 )^(2/3) * (P0 /U1^(2/3)) * 9^(1/3) + 108] / (S1S1 /(9U1P12P0)) = 3U1P12P0(S1S1)^(1/3) + 108/(S1S1 /(9U1P12P0)) = 3U1P12P0 (S1S1)^(1/3) + 9U1P12P0. Therefore, the firm will supply a positive amount of output as long as the price is greater than $36 (i.e., the minimum of the LRAC curve). Therefore, the answer is C.

Question 3

A firm has a long-run cost function, C(q) = 8q² + 72. In the long run, this firm will supply a positive amount of output, as long as the price is greater than

Accepted Answer

In the long run, a firm will supply a positive amount of output if the price is greater than the minimum average cost. The average cost function is AC(q) = C(q)/q = 8q + 72/q. The minimum average cost occurs where the derivative of AC(q) with respect to q is zero. Solving this gives q = 3, and substituting back into AC(q) gives a minimum average cost of $48.

Question 4

A firm has a long-run cost function, C(q) = 9q² + 9. In the long run, this firm will supply a positive amount of output, as long as the price is greater than

Accepted Answer

The answer of A firm has a long-run cost function,...

Question 5

Suppose that Dent Carr's long-run total cost of repairing s cars per week is c(s) = 2s² + 18. If the price he receives for repairing a car is $8, then in the long run, how many cars will he fix per week if he maximize profits?

Accepted Answer

The answer of Suppose that Dent Carr's long-run total cost...

Question 6

Suppose that Dent Carr's long-run total cost of repairing s cars per week is c(s) = 3s² + 75. If the price he receives for repairing a car is $36, then in the long run, how many cars will he fix per week if he maximize profits?

Accepted Answer

To maximize profits, set marginal cost (MC) equal to marginal revenue (MR). MC is the derivative of c(s), which is 6s. MR is the price, $36. Solving 6s = 36 gives s = 6.

Question 7

Suppose that Dent Carr's long-run total cost of repairing s cars per week is c(s) = 3s² + 108. If the price he receives for repairing a car is $24, then in the long run, how many cars will he fix per week if he maximize profits?

Accepted Answer

The answer of Suppose that Dent Carr's long-run total cost...

Question 8

In Problem 9, suppose that Irma's production function is f(x₁, x₂) = . If the price of factor 1 is w₁ = $3 and the price of factor 2 is w₂ = $6, then her supply function is given by the equation

Accepted Answer

The answer of In Problem 9, suppose that Irma's production...

Question 9

A firm has a long-run cost function, C(q) = 4q² + 4. In the long run, this firm will supply a positive amount of output, as long as the price is greater than

Accepted Answer

The answer of A firm has a long-run cost function,...

Question 10

A firm has a long-run cost function, C(q) = 8q² + 288. In the long run, this firm will supply a positive amount of output, as long as the price is greater than

Accepted Answer

In the long run, a firm will supply a positive amount of output if the price is greater than the minimum average cost. The average cost function is AC(q) = (8q^2 + 288)/q = 8q + 288/q. The minimum average cost occurs where the derivative of AC(q) with respect to q is zero. Solving this gives q = 6, and substituting back gives AC(6) = 96. Thus, the price must be greater than $96.

Question 11

In Problem 9, suppose that Irma's production function is f(x₁, x₂) . If the price of factor 1 is w₁ = $3 and the price of factor 2 is w₂ = $9, then her supply function is given by the equation

Accepted Answer

The answer of In Problem 9, suppose that Irma's production...

Question 12

In Problem 9, suppose that Irma's production function is f(x₁, x₂) . If the price of factor 1 is w₁ = $2 and the price of factor 2 is w₂ = $15, then her supply function is given by the equation

Accepted Answer

The answer of In Problem 9, suppose that Irma's production...

Question 13

Suppose that Dent Carr's long-run total cost of repairing s cars per week is c(s) = 3s² + 108. If the price he receives for repairing a car is $24, then in the long run, how many cars will he fix per week if he maximize profits?

Accepted Answer

The answer of Suppose that Dent Carr's long-run total cost...

Question 14

In Problem 9, suppose that Irma's production function is f(x₁, x₂) . If the price of factor 1 is w₁ = $2 and the price of factor 2 is w₂ = $6, then her supply function is given by the equation

Accepted Answer

The answer of In Problem 9, suppose that Irma's production...

Question 15

In Problem 9, suppose that Irma's production function is f(x₁, x₂) . If the price of factor 1 is w₁ = $5 and the price of factor 2 is w₂ = $15, then her supply function is given by the equation

Accepted Answer

The answer of In Problem 9, suppose that Irma's production...

Quiz 21: A: Firm Supply

Suppose that Dent Carr's long-run total cost of repairing s cars per week is c(s) = 2s2 + 50. If the price he receives for repairing a car is $8, then in the long run, how many cars will he fix per week if he maximize profits?

A firm has a long-run cost function, C(q) = 3q2 + 108. In the long run, this firm will supply a positive amount of output, as long as the price is greater than

A firm has a long-run cost function, C(q) = 8q2 + 72. In the long run, this firm will supply a positive amount of output, as long as the price is greater than

A firm has a long-run cost function, C(q) = 9q2 + 9. In the long run, this firm will supply a positive amount of output, as long as the price is greater than

Suppose that Dent Carr's long-run total cost of repairing s cars per week is c(s) = 2s2 + 18. If the price he receives for repairing a car is $8, then in the long run, how many cars will he fix per week if he maximize profits?

Suppose that Dent Carr's long-run total cost of repairing s cars per week is c(s) = 3s2 + 75. If the price he receives for repairing a car is $36, then in the long run, how many cars will he fix per week if he maximize profits?

Suppose that Dent Carr's long-run total cost of repairing s cars per week is c(s) = 3s2 + 108. If the price he receives for repairing a car is $24, then in the long run, how many cars will he fix per week if he maximize profits?

In Problem 9, suppose that Irma's production function is f(x1, x2) = . If the price of factor 1 is w1 = $3 and the price of factor 2 is w2 = $6, then her supply function is given by the equation

A firm has a long-run cost function, C(q) = 4q2 + 4. In the long run, this firm will supply a positive amount of output, as long as the price is greater than

A firm has a long-run cost function, C(q) = 8q2 + 288. In the long run, this firm will supply a positive amount of output, as long as the price is greater than

In Problem 9, suppose that Irma's production function is f(x1, x2) . If the price of factor 1 is w1 = $3 and the price of factor 2 is w2 = $9, then her supply function is given by the equation

In Problem 9, suppose that Irma's production function is f(x1, x2) . If the price of factor 1 is w1 = $2 and the price of factor 2 is w2 = $15, then her supply function is given by the equation

Suppose that Dent Carr's long-run total cost of repairing s cars per week is c(s) = 3s2 + 108. If the price he receives for repairing a car is $24, then in the long run, how many cars will he fix per week if he maximize profits?

In Problem 9, suppose that Irma's production function is f(x1, x2) . If the price of factor 1 is w1 = $2 and the price of factor 2 is w2 = $6, then her supply function is given by the equation

In Problem 9, suppose that Irma's production function is f(x1, x2) . If the price of factor 1 is w1 = $5 and the price of factor 2 is w2 = $15, then her supply function is given by the equation

Suppose that Dent Carr's long-run total cost of repairing s cars per week is c(s) = 2s² + 50. If the price he receives for repairing a car is $8, then in the long run, how many cars will he fix per week if he maximize profits?

A firm has a long-run cost function, C(q) = 3q² + 108. In the long run, this firm will supply a positive amount of output, as long as the price is greater than

A firm has a long-run cost function, C(q) = 8q² + 72. In the long run, this firm will supply a positive amount of output, as long as the price is greater than

A firm has a long-run cost function, C(q) = 9q² + 9. In the long run, this firm will supply a positive amount of output, as long as the price is greater than

Suppose that Dent Carr's long-run total cost of repairing s cars per week is c(s) = 2s² + 18. If the price he receives for repairing a car is $8, then in the long run, how many cars will he fix per week if he maximize profits?

Suppose that Dent Carr's long-run total cost of repairing s cars per week is c(s) = 3s² + 75. If the price he receives for repairing a car is $36, then in the long run, how many cars will he fix per week if he maximize profits?

Suppose that Dent Carr's long-run total cost of repairing s cars per week is c(s) = 3s² + 108. If the price he receives for repairing a car is $24, then in the long run, how many cars will he fix per week if he maximize profits?

In Problem 9, suppose that Irma's production function is f(x₁, x₂) = . If the price of factor 1 is w₁ = $3 and the price of factor 2 is w₂ = $6, then her supply function is given by the equation

A firm has a long-run cost function, C(q) = 4q² + 4. In the long run, this firm will supply a positive amount of output, as long as the price is greater than

A firm has a long-run cost function, C(q) = 8q² + 288. In the long run, this firm will supply a positive amount of output, as long as the price is greater than

In Problem 9, suppose that Irma's production function is f(x₁, x₂) . If the price of factor 1 is w₁ = $3 and the price of factor 2 is w₂ = $9, then her supply function is given by the equation

In Problem 9, suppose that Irma's production function is f(x₁, x₂) . If the price of factor 1 is w₁ = $2 and the price of factor 2 is w₂ = $15, then her supply function is given by the equation

Suppose that Dent Carr's long-run total cost of repairing s cars per week is c(s) = 3s² + 108. If the price he receives for repairing a car is $24, then in the long run, how many cars will he fix per week if he maximize profits?

In Problem 9, suppose that Irma's production function is f(x₁, x₂) . If the price of factor 1 is w₁ = $2 and the price of factor 2 is w₂ = $6, then her supply function is given by the equation

In Problem 9, suppose that Irma's production function is f(x₁, x₂) . If the price of factor 1 is w₁ = $5 and the price of factor 2 is w₂ = $15, then her supply function is given by the equation