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Unformatted text preview: decomposed into percentage changes in input usage over time and technological change. Use your results to explain how you would measure technological change. 4. A profit maximizing farm would prefer the price of its output to remain fixed at some value, rather than to fluctuate around this value. Explain. 5. The long-run total cost for each agricultural firm that supplies output q is C = q 3- 4q 2 + 8q. Firms freely enter the industry if profits are positive and leave the industry if profits are negative. Derive the industrys long-run supply function. Assume that the corresponding industry demand function is Q = 1,800 - 100P. Determine equilibrium price, aggregate quantity produced, and the number of firms in the industry. Calculate the amount of consumer and producer surplus....
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