 # When a firm has drts the lrac increases and the

• 19

Course Hero uses AI to attempt to automatically extract content from documents to surface to you and others so you can study better, e.g., in search results, to enrich docs, and more. This preview shows page 8 - 11 out of 19 pages.

When a firm has DRTS, the LRAC increases, and the output also increases by a smaller percentage.True/F
3.cost relationships at a specific quantity; focus on TC, TFC, TVC, ATC, AFC, AVC, and MCA firm is producing 20 units of output. At this output, the firm’s average total cost is \$470 and its total fixedcost is \$2,000. What is the firm’s total variable cost at this output?
22. (16 points) Given a monopoly’s inverse demand function and total cost function, find profitmaximizing output, the price charged by monopoly, calculate total profit, and calculate the priceThe elasticity of demand.
4.production functions and their characteristicsWith a linear production function, it’s not possible for a firm’s output to be produced with the use of only 1 input. T/FA firm’s production function is as follows: Q = min {14K, 17L}, where K and L are both measured in hours. The firmcurrently uses 11 hours of labor and 13 hours of the capital. How will the firm’s output change if its labor usage is 12hours?
5.appen nextProfit will go to 0Competitors will enter the industryPrice decreaseFirm’s output decrease22. (16 points) Given a monopoly’s inverse demand function and total cost function, find profitmaximizing output, the price charged by monopoly, calculate total profit, and calculate the priceThe elasticity of demand.

Course Hero member to access this document

Course Hero member to access this document

End of preview. Want to read all 19 pages?

Course Hero member to access this document

Term
Fall
Professor
Wong
Tags
• • • 