Problem_Set_8

Problem_Set_8 - C ( Q ) = Q 2 , what is the optimal level...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
ECON W3211.002 Intermediate Microeconomics Problem Set 8 Due Monday, November 22, 2010 1. Answer the following questions: (a) The monopolist faces a demand curve given by Q = 100 - 2 p . The firm’s cost function is C ( Q ) = 2 Q . What is the optimal level of output and price? (b) How does your answer change if Q = 10 p - 3 (c) If Q = 100 /p and
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: C ( Q ) = Q 2 , what is the optimal level of output of the monopolist? 2. Perloff, Chapter 11: 27 1 , 37, 41 3. Perloff, Chapter 13: 26, 28 2 , 30, 35 1 There are a couple of typos in the text book; Set the production Q = L . 5 K . 5 and MP L = 1 2 K . 5 /L . 5 . 2 Assume m < 1 . 1...
View Full Document

This note was uploaded on 10/03/2011 for the course ECON W3211 taught by Professor Elmes during the Fall '09 term at Columbia.

Ask a homework question - tutors are online