Midterrm Examination1

Midterrm Examination1 - University of Southern California...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
University of Southern California Economics 332: Contracts, Organizations, and Institutions Professor: Dr. Grigor M. Sukiassyan September 27, 2006 Midterm Examination 1 Use bluebook to provide your answers. Type your name and student ID on your blue book. You may use a calculator. All questions are compulsory and weight as specified. Time Allowed: 1 hour and 30 minutes. Good luck! 1. (20 points) A firm can choose between two production technologies for a new product line. If it installs technology 1, its yearly costs will be C 1 ( q ) = 3600 + 65 q + 36 q 2 . If it installs technology 2, they will be C 2 ( q ) = 900 + 900 q + q 2 . a) What is the minimum efficient scale with both technologies? (Hint the minimum efficient scale is the output level when the average cost is at minimum). b) Which technology would the firm prefer (purely from a cost standpoint) if it expected to sell 30 units in summer and 10 units in winter each year? 2. (20 points) The inverse market demand curve for a good is
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 05/04/2008 for the course BUAD 305 taught by Professor Davila during the Spring '07 term at USC.

Page1 / 2

Midterrm Examination1 - University of Southern California...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online