Pset6 - Ec 115 Problem Set 6. 1. Consider the following...

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

View Full Document Right Arrow Icon
Ec 115 Problem Set 6. 1. Consider the following total cost function C = q 2 + 6 q + 16 : (a) Find the average cost (AC) and marginal cost (MC) functions. (b) For what value of q is AC a minimum (check socs)? (c) For what values of q is (i) MC below AC and (ii) MC is above AC? (d) Sketch on the same graph the MC and AC functions. q is given where MC = p: Find this supply function q = q ( p ) = 1 4 [ p 6] 2 16 : State a restriction on p p is too low? 2. Suppose a monopolist faces demand function q = 36 2 p: (a) Find the inverse demand function and derive the revenue function (b) Find the average revenue and marginal revenue functions. C = q 2 + 6 q + 16 : What level of q
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.
Ask a homework question - tutors are online