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1. Suppose the common fishing production function is: F(m) = 1.1 m- (0.1)(m^2)
a. What are the total production numbers and individual returns for 2 firms andfor 12 firms?
b. Suppose the market rate of return is 5% (that is , 0.05). Will there still be fishing by 10 firms? Is this tragic or not?
c. Also plot function and show production for 2 and 12 firms.
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1. A monopoly firm maximizes its profit by producing 500 units output (so Q = 500). At that level of output, its marginal revenue is $30, its average revenue is $40, and its average total cost is $34. At Q = 500, what is the firm's total cost? 2. A m..
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