Consider price-taking firm with production function

Assignment Help Business Economics

Reference no: EM131387164

Consider a price-taking firm with production function y=4·x^(1/2). And the input price of x is $8 per unit. The market inverse demand is p=90-y. 1. Write down the firm’s cost function. 2. Derive the firm’s supply function. 3. Find the market equilibrium, such as equilibrium price, quantity and firm’s profit.

Reference no: EM131387164

Questions Cloud

Effective critical thinker makes decision making easier : Give your opinion on whether being an effective critical thinker makes decision making easier or more challenging. “The major difference between a successful person and one that is not successful is that the successful person, over time, tends to mak..

Federal and nutrition and health care programs : List all the Federal and Nutrition and Health Care programs these following people are eligible for. Write a rationale on why you think they are eligible for the programs.

The federal reserve take to reduce unemployment : What action can the federal reserve take to reduce unemployment? What is the primary tool used by the federal reserve to accomplish the action you listed in part A? Explain, in detail how this tool works.

Preferential trade agreements : The demand curve for T-shirts in the US is given by Q = 100 – P, where Q indicates the number of T-shirts purchased and P is the price. Suppose that there are no T-shirts produced in the US, but they can be imported either from Mexico or from the res..

Consider price-taking firm with production function : Consider a price-taking firm with production function y=4·x^(1/2). And the input price of x is $8 per unit. The market inverse demand is p=90-y. Write down the firm’s cost function. Derive the firm’s supply function. Find the market equilibrium, such..

What mistakes did the federalists make : What developments of the 1790s resulted in the rise of the Republican Party? What mistakes did the Federalists make? What evidence reveals that sectional differences regarding the economy and allocation of political power were growing in the period o..

Price level of a negative demand shock : Use the AD-AS graph to explain the short run and long run effects on real GDP and price level of a negative demand shock, such as a decrease in autonomous consumption. how the economy reacts to the shock and what happens in the long run to GDP and Pr..

Find the equilibrium price of permits : There are a large number of chicken farms of varying sizes on the Delmarva peninsula and together they produce huge quantities of fecal waste. Suppose that a system of tradeable permits is created in which each permit authorizes one ton of waste runo..

Free trade import level and level of domestic production : This problem asks you to consider the effects of market share targets. Assume that there is domestic competitive supply in Japan. The Japanese supply curve is given by S(P) = P: The foreign supplier (from the U.S.) has market power over residual dema..

User Account

All Pages