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1. The inverse demand for a product is given by P = 400 - 5Q, where Q measures the number of units and P is the price per unit. Suppose that total cost is TC = 100Q + 2.5Q2 with marginal cost per unit of MC = $100 + 5Q. Technological innovation reduces total cost to TC = 25Q + 2.5Q2 and marginal cost per unit to MC = $25 + 5Q. Identify equilibrium price and quantity before and after the cost reduction. How does profit change?
2. Consider a firm in a perfectly competitive market with total costs given by:
a. What is this firm's marginal cost function? Over what range of output are the firm's marginal costs decreasing? Increasing?
b. Suppose that market price is $10. What is this firm's profit-maximizing level of output
Counterproductive Work Behavior
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Executives in a healthcare organization strategically plan and produce the vision, mission. What are some of the inputs that the senior management team would consider when developing the strategic plan?
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?Think of an externality in your community. Explain what type of externality it is. How can it be resolved (through the market and/or through government policie
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