User Account

All Pages

Find market demand for good x

Assignment Help Business Management
Reference no: EM132407180

This question will study the market for good x.

Suppose there is one consumer that is a price taker in all markets with the following preferences:

U(x, y) = 3x + y

This consumer has an income of I = 1000. There is one firm, which is a price-taker in the market for inputs and operates under perfect competition in the market for x. The firm follows the following production function, with inputs K and L, to produce good x:

f(K, L) = K 1/3L 1/3 Capital is fixed at K = 8. Wages and the rental rate for capital are w = 8/3 and r = 300, respectively. The price for good y is determined elsewhere at py = 300

(a) Find market demand for good x.

(b) Is f(K, L) increasing, decreasing or constant returns to scale?

(c) Find the short-run cost function for the firm producing good x.

(d) Find the short-run supply for x.

(e) What is the equilibrium market price and quantity for x.

(f) What is the equilibrium profit of the firm? Explain why the firm has incentives to keep operating.

Reference no: EM132407180

Questions Cloud

Ad curve based on the quantity theory of money : Provide a rationale for the downward slope of the AD curve based on the quantity theory of money?
Whistle-blowing-motivation-decentralization and group norms : Pick one of the following terms for your research: Whistle-blowing, motivation, decentralization, group norms,
Explain why if two mutually exclusive projects : Explain why if two mutually exclusive projects are being compared, the short-term project might have the higher ranking under the NPV criterion
Define how success will be measured : Imagine your health care organization conducted an employee engagement survey and received the results. Define how success will be measured.
Find market demand for good x : (a) Find market demand for good x. (b) Is f(K, L) increasing, decreasing or constant returns to scale? (c) Find the short-run cost function for the firm
What states have np full practice authority : What states have NP Full Practice Authority and which states have limitations or restrictions? How does this apply to your state? Please address questions.
Present the theoretical grounds of policy implementation : Identify two scholarly resources that present the theoretical grounds of policy implementation and write a short description of the content presented in paper
Range of output exhibiting increasing returns : Please help me to identify what the range of output exhibiting increasing returns (increasing MP), and the range exhibiting diminishing returns (decreasing MP).
Which of culture and caring theories most resonates with you : Which of the culture and caring theories most resonates with you for your practice as an NP? How does the theory integrate the nursing paradigm?

Reviews

Write a Review

Business Management Questions & Answers

  Narrative discussion of what is technology

Do the following: Craft a narrative discussion of "What is Technology?"

  Result in loss of personal information

Question 1. Social media sites result in loss of personal information because

  Advantages and disadvantages of using it on your linux

Discuss what ssh is and the advantages and disadvantages of using it on your Linux distribution.

  Write a short paragraph for each of the searched articles

Find two articles in the library that covers this week's information. Write a short paragraph of 100-200 words for each of the articles. The listing of the reference does not count in the word count.

  Superior in the relationship or as the subordinate

Students experienced the "boss effect" either as the superior in the relationship or as the subordinate

  Dimensions of national culture

Describe the five value dimensions of national culture as identified by the Hofstede's 1. framework for assessing cultures.

  Determining the intro to sales

Assume you are a textbook salesperson trying to obtain a new account, XYZ University. Your potential buyer is known to be blunt and abrasive

  Preparation for the informal settlement conference

In preparation for the informal settlement conference with OSHA's Area Director, you decide to have a talk with the foreman of the site and you learn that the General Contractor's superintendent at the site was rather rude to the OSHA Compliance O..

  Mechanisms of bacterial resistance against antibiotics

Mechanisms of bacterial resistance against antibiotics

  High performance and balanced scorecard

Based on your readings, what have you learned about high performance and balanced scorecard/competing forces?

  Venezuela exports oil to the united states

For each of the following trade relationships, choose the likely source of the comparative advantage of each of the exporting countries.

  Beneficial to the human spirit

Janine is a herbalist, preparing certain natural tonics she believes to be "beneficial to the human spirit." Her activities are located in a province which does not regulate such matters.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd