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A firm uses a single input to produce its output which is sold in a competitive market. The price of the input is $4. The firm's production function is f(x) = 60x - x2 and the price of its output is $1.
a. Calculate the profit-maximizing amount of input that the firm will buy?
b. Calculate the firm's total profits assuming that is has fixed costs of $100.
As additional demanders enter the market for a particular good, the market demand curve shifts outward and becomes flatter at a given price. Does this fact imply that the price elasticity of demand becomes greater at any givenprice?
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Covenants of good faith and fair dealing
A production function is given by F(K,L) =2L(K)^1/2 (note output q= F(K,L)). In the short run K=25, and r =5, and wages are given by w. Derive the average cost, the marginal costs, and the total cost of this production function. Does it possess the p..
to be specific suppose we have a two-period model. an individual earns labor income y0 100k at time zero and earns no
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