2008ps3 - answer key

2008ps3 - answer key - BUAD 351 - Economic Analysis for...

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BUAD 351 - Economic Analysis for Business Decisions Homework 3 due: Wed 03/05/2008 PART (i): multiple choice question 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 answer b c b c d d d c d d b c a b d PART (ii): Longer questions Q = 3 p L; where L is the num- Q = 3 p L so L units of labor produce Q 2 = 9 units of output. Thus, the short-run cost function is given by C ( Q ) = 500 + 2 Q 2 achieve using e¢ cient production methods. A production function is a mathematical representation of this relationship. Output=R(Inputs). 3. Suppose you are facing a downward-sloping inverse demand curve, P = P ( Q ) : revenue curve. What two e²ects enter the determination of marginal revenue? The marginal revenue curve is the change in total revenue that results from increasing output "a little bit". That is, given that the total revenue can be written as TR ( Q ) = Q P ( Q ) ; marginal revenue is the derivative of the total revenue curve, MR ( Q ) = dTR ( Q ) dQ ; which gives the slope of the total revenue curve at any level of output. Using the formula for
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This note was uploaded on 07/23/2008 for the course BUAD 351 taught by Professor Eastin during the Spring '07 term at USC.

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2008ps3 - answer key - BUAD 351 - Economic Analysis for...

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