Econ 110 F13 PS4 - Economics 110-02 Intro to Economic...

This preview shows page 1 out of 1 page.

Unformatted text preview: Economics 110-­‐02: Intro to Economic Theory Wesleyan University Fall 2013 Professor Damien Sheehan-­‐Connor Problem Set 5 1. 2. 3. 4. Textbook Problem, Chapter 12, Problem 4 Textbook Problem, Chapter 12, Problem 5 Textbook Problem, Chapter 12, Problem 6 Suppose that a firm has the cost function = 100 + ! . The firm is in a perfectly competitive industry facing a price of 50. a. Write the firm’s profit function, (). b. Solve the firm’s profit maximization problem to find the optimal quantity of output. c. What will the firm’s profits be at this quantity? d. Do you think the market this firm sells in is in long run equilibrium? Explain. e. If the market is not in long run equilibrium, what do you think the price will be when the market reaches long term equilibrium? ...
View Full Document

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern