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ARME608 MID TERM EXAM 1997 - Explain any difference 4 In...

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ARME 608 First Exam Fall l997 1. What would the expansion path look like if one of the input factors is an inferior input over a limited range of output. (Graph the relationship and explain). 2. You would like to know how marginal cost changes when the price of an input increases but the only information you have is the conditional demand function for that input. How can you find the answer? 3. Graphically show both the long run and short run profit functions as a function of the output price.
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Unformatted text preview: Explain any difference. 4. In ocean fishing (in a region of the ocean) the number of fish caught is an increasing but first convex and then concave function of the number of fishing boats. How many fishing boats will be used if each boat is independently owned? How many boats would be used if the fishermen and fisherwomen form a cooperative? How many boats will be used if the fishing rights are given or sold to one individual? (Assume constant output price and input prices.)...
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