test2_Memo.pdf - TEST 2 MEMO: 1.1 Wayne Industries produces...

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TEST 2 MEMO:1.1Wayne Industries produces and sells anvils. Its short-run cost function is? = ??? + ??? + ???1.1aWrite down the Wayne’s average cost (AC) function, and then find the level(s) of?that satisfies thefirst-order and second-order conditions for the minimisation of Wayne’s AC. [4].
1.1bShow that AC is equal to marginal cost (MC) at the level(s) of?that minimises AC. [2]
1.2Dunder Mifflin produces and sells nails. Its production function is? = ?𝑳?.?, while it can sell nails at? = ?. Furthermore, its short-run cost function is? = ?𝑳. Find the value(s) of𝐿that satisfies the first-orderand second-order conditions for the maximisation of Dunder Mifflin’s profit. [6]
1.3The demand for (a pocket of) apples is?
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Term
Fall
Professor
JV Heerden

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