Problem Set 6 - ECON/FRE 374 Problem Set 6 Due: 1 PM,...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
ECON/FRE 374 – Problem Set 6 Due: 1 PM, Friday, December 2, 2005 Instructions: a) Your grade on this problem set will be determined by randomly grading a single problem from the set below. It is thus important to do each question carefully as any one problem could determine your grade. b) Problem sets are to be handed in at Emmanuel Villanueva’s office (McM 336). Please do not upload your problem sets in webct. c) Any problem set received after the time it is due will not be graded. d) Please label and mark all graphs clearly. 1. Karine is a landowner in Quebec. She owns two fields and grazes cows on both. Field 1 has a natural pond; in Field 2 Karine must pump in water. The total cost of producing tankers of milk (q) in each field is represented by: TC 1 = 20 + 5q 2 and TC 2 = 50 + 5q 2 . The price of milk is set at p = 40. a) Write down the formulas for average and marginal cost in each field. Plot AC 1 and MC 1 on one diagram and AC 2 and MC 2 on another. b)
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 11/29/2010 for the course ECONOMICS 300-400 taught by Professor Varies during the Spring '10 term at Cornell University (Engineering School).

Page1 / 2

Problem Set 6 - ECON/FRE 374 Problem Set 6 Due: 1 PM,...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online