midIII09f - Your name: Econ 420K Midterm Exam III Fall 2009...

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Your name: Econ 420K Midterm Exam III Fall 2009 Svetlana Boyarchenko Please read all the questions carefully. You have 75 minutes for this test. You can earn a total of 75 points on the test. The number of points assigned to each question roughly indicates the number of minutes which is reasonable to spend on each question. Don’t be stuck on a question!! It’s better to move on and then return if time permits. There is also a bonus question that gives to the intrepid extra 5 points. You must show all your work to get full credit. Partial credit will be given at my discretion, and it is non-negotiable. Good luck!! 1. (25 points) Suppose that there are 1,000 identical firms in a perfectly competitive industry. Each firm has a short run cost function of the form C ( q ) = q 2 + 10 q + 100 . (a) (5 points) Calculate the sort run average and marginal cost func- tion. At what output level does short run average cost reach a minimum? What is the minimum of the short run average cost?
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This note was uploaded on 06/15/2011 for the course ECO 420K taught by Professor D during the Fall '10 term at University of Texas at Austin.

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midIII09f - Your name: Econ 420K Midterm Exam III Fall 2009...

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