What is individual firm short-run supply curve?

Reference no: EM13690252

Suppose the long-run total cost function for any firm in an industry is given by the cubic equation

TC=a+bq+cq^2+dq^3

a) Show (using calculus) that this total cost function is consistent with a U-shaped average cost curve for at least some values of a, b, c and d.

Please answer the rest of the question using the values of and you found in (a).

b) What is individual firm short-run supply curve?

(c) Suppose it is a constant cost industry and it is perfectly competitive. What is the long-run supply curve? How many units of output will each firm supply in the long-run?

Reference no: EM13690252

Questions Cloud

Promotional state-regulatory state and social service state : Normal 0 false false false EN-US X-NONE X-NONE MicrosoftInternetExplorer4 ..

Ronaldos expected utility if he decides to play the season : Ronaldo plays soccer for a living in a famous European club (A.C. Milan). Although he enjoys playing soccer he does it for the money, and derives utility from his yearly income playing soccer. Assume Ronaldo faces a utility function of the form U= 10..

Are dvd players normal or inferior goods : The demand function for DVD players has been estimated to be Q Player = 134 - 1.07PPlayer + 46Pm - 2.1PDVD - 5M, where QPlayer is the quantity of DVD players, PDVD is the price of a videocassette, Pm is the price of a movie, PPlayer is the price of a..

What is individual firm short-run supply curve? : Suppose the long-run total cost function for any firm in an industry is given by the cubic equation. TC=a+bq+cq^2+dq^3. Show (using calculus) that this total cost function is consistent with a U-shaped average cost curve for at least some values of a..

Monthly deposits are made into an account paying : Monthly deposits are made into an account paying 6% nominal interest compounded monthly. If the objective of these deposits is to accumulate $100,000 by the end of the 5th yr, what is the amount of each deposit?

Decrease in the value added tax on restaurants : The French government decreased VAT (value added tax) on restaurants in November 2008 from 19.6 percent to 5.5 percent. However, an estimate shows that consumer prices have only decreased by 1.9 per cent.

Expect current consumption expenditures : One would expect current consumption expenditures to be most closely related to:

Expect traditional expansionary monetary and fiscal policies : One would expect traditional expansionary monetary and fiscal policies to be more than minimally effective in terms of curing, or at least mitigating against:

User Account

All Pages