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Unformatted text preview: why or why not? 2. A competitive firm has the following shortrun cost function: srtc(x) = x 3 8x 2 + 30x + 5 a. Find the firms marginal cost function. b. Find the firms average variable cost function. c. Graph the firms marginal cost function and average variable cost function. d. Assuming all fixed costs are sunk, at what price will the firm shut down in the short run? e. At what price would the firm supply 5 units of x to profit maximize? f. At what price would the firm make zero profit? 3. The cheese business in Lake Fondulac, Wisconsin, is a competitive industry. All cheese manufacturers have the cost function lrtc = q 2 +9, while demand for cheese in the town is given by Q D = 120  P. What is the longrun equilibrium number of firms in this industry? Econ 313.1  Wissink  Fall 2005 PS#5  XtraQ DUE: In class on Halloween (Oct 31)...
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This note was uploaded on 10/29/2009 for the course ECON 3130 taught by Professor Masson during the Fall '06 term at Cornell University (Engineering School).
 Fall '06
 MASSON

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