Cost curves can be combined to provide information about firms (assuming in a perfectly
competitive market). The marginal cost curve will cut the average cost curve at its lowest point.
In this case, a firm's profit maximizing price would be
1. The estimated demand function is and its estimated form is.
2. Please refer the attached graph.
3. With the price ceiling of $ 6, the quantity traded is 1.899 units. The quantity traded in the
market has decreased from its original equ
1. The demand function without considering unemployment is.
2. The demand function controlling for unemployment is and its estimated form is
3. The equilibrium price and quantity for first model is $28.98 and 30,249.119 units
respectively. Similarly, the