Pset7 - Ec115 Problem Set 7 1. The rm cost of producing...

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Ec115 Problem Set 7 q is C ( q ) = 2 + q + 0 : 5 q 2 : Compute MC, AC and show AC is a minimum at q = 2 : Suppose further that demand for the good is given by q d = 37 p: p as given - it thus chooses output q to maximise ( q ) = pq 2 q 1 2 q 2 : q ( p ) denote that solution. Find the competitive equilibrium where q = q d ; i:e: at what price does supply equal demand, and what is the quantity traded? q s = 2 q : Find the competitive equilibrium where industry supply equals demand. (iii) Suppose there are n = 1 2 36 2 [1 + n ] 2 2 :

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This note was uploaded on 12/31/2011 for the course ECON MR 102 taught by Professor Huyduong during the Winter '11 term at RMIT Vietnam.

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Pset7 - Ec115 Problem Set 7 1. The rm cost of producing...

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