Handout Ch 3 - Extra

Handout Ch 3 - Extra - Q P 04 . 34 − = , where Q denotes...

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Extra Study Problems, Chapter 3 1. Suppose that for a firm, the demand function can be expressed as Q Q P 05 . 0 20 ) ( = and 65 50 56 . 0 20 ) , ( 2 = Q Q P Q P π , where P is price and Q is output. Find ) ( Q . 2. The demand for chicken is given by the demand function P Q 75 . 0 10 = , where Q is the quantity demanded of chicken in pounds and P is the price of chicken per pound. Calculate the quantity demanded when price of chicken is $2.5, $3.0, $3.5, and $5 per pound. 3. Suppose that a farmer is producing corn. Suppose further that the demand function for corn is given by:
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Unformatted text preview: Q P 04 . 34 − = , where Q denotes output. If the variable cost ( VC ) of producing corn is given by Q Q Q VC 10 56 . ) ( 2 + = and the fixed cost is . 85 $ = FC a) What is the total cost function for the production of corn, TC(Q) ? b) What is the total revenue function for corn sales, TR(Q) ? c) What is the profit ( π ) from corn production? d) Derive the average cost ( AC ) function for corn. e) What is profit-maximizing output for the corn producer?...
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This note was uploaded on 02/10/2011 for the course AEB 3510 taught by Professor Mikaelsandberg during the Spring '11 term at University of Florida.

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