firm_location_model_A

firm_location_model_A - Excel file consists of the...

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Excel file consists of the following worksheet: Firm Location Model 1 Model of Appendix 3 with given x and Q Firm Location Model 2 Model of Appendix 3 determining optimal Q with given x Firm Location Model 3 Model of Appendix 3 determining optimal Q and x
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Firm Location Model - Appendix to Chapter 3 Profit = TR -TC TR = PxQ If P=constant, firm is perfectly competitive. If P(Q) ["P depends on Q"], firm is "market powerful" - e.g., monopolistically competitive firm. P(Q) is the inverse demand curve. TC consists of three components eRQ=1.2RQ 12 cost of raw lumber wLQ 10 cost of labor Q(eax+b(z-x))=Q(eax+by)=Q(1.2ax+by) 270 transportation cost of raw lumber to pt. x and 292 TC Sample Parameter Values Q 10 At Arbitrary Q P 90 TR TC a 1 Profit 900 - 292 b 1 c 100 d -1 e 1.2 w 1 L 1 R 1 x 10 z 25 y 15 parameters of inverse demand curve
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MR 0 100 1.2 1 27 5 90 1.2 1 27 10 80 1.2 1 27 15 70 1.2 1 27 20 60 1.2 1 27 25 50 1.2 1 27 30 40 1.2 1 27 35 30 1.2 1 27 40 20 1.2 1 27 45 10 1.2 1 27 transportation of logs from pt. x 50 0 1.2 1 27 55 -10 1.2 1 27 60 -20 1.2 1 27 65 -30 1.2 1 27 70 -40 1.2 1 27 608 75 -50 1.2 1 27 80 -60 1.2 1 27 85 -70 1.2 1 27 90 -80 1.2 1 27 95 -90 1.2 1 27 100 -100 1.2
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This note was uploaded on 09/08/2010 for the course ECON 165 at San Jose State.

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firm_location_model_A - Excel file consists of the...

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