[] 98
46 points in total. You have to state your reasoning clearly. No points will
be given to an un explained answer.
1.Product X is provided by a competetive constant-cost industry. The cost
functions of all producers are the same. Each producer could
98
30 points in total. you have to state your reasoning clearly. No point will be
given to an unexplained answer.
1.(8 points) Which of the following circumstances might affect the price
charged by a young doctor just out of medical school and why?
(a) T
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33
1. Good Y is provided by a competitive increasing-cost industry. The total cost
function of manuffacturer i is:
TCi(q) = i^2 + q^2 , i = 1, 2, 3, .
where q denotes the quantity produced in a year. Let p denote the market
price.
The yearly mar