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() () 6 University of Toronto, Department of Economics, ECO 204, 2013  20143 Here are some counterexamples:
⏟
() ⏟ ⏟
() ⏟
() () Question 3
Graph the function
defined on
. Does the function “look” strictly concave (decelerating and doesn’t
have flat portions)? If so, is it true that strict concavity implies that ( )
for all values of (in particular
)? The function certainly “looks” strictly concave – the graph is decelerating and there aren’t any horizontal portions. Now:
()
()
Note that () This shows that a function can be strictly concave even if at some point. Question 4
Convert each of the following minimization problems into a maximization problem:
(a) (b) (c) Question 5
Consider a perfectly competitive firm (i.e. price taker) with the cost function
total fixed cost and
is a constant. where is the
7 University of Toronto, Department of Economics, ECO 204, 2013  20143 (a) Write down the profit equation in terms of (b) Denote profits by
function. (the price), and the...
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This homework help was uploaded on 02/15/2014 for the course E 204 taught by Professor Ajaz during the Winter '13 term at University of Toronto.
 Winter '13
 AJAZ

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