Prof. Daniele Coen-Pirani
Suggested Answers for the Final Exam
Exercise #1. In the short-run the number of rms is constant at 84. The supply function of
each rm is found by setting p = M C (y ), and taking into account the possi
Econ 73-250A-F Spring 2001 Prof. Daniele Coen-Pirani Class #25 - Review Exercise (a) The supply firm of each firm is given by the portion of the MC curve that lies above the AC curve. The MC curve is MC(y) = 8y,and a firm that produces chooses a quantity
Econ 73-250A-F Spring 2001 Prof. Daniele Coen-Pirani TOPICS COVERED IN FINAL EXAMINATION Please notice: The final exam is comprehensive. Sometimes the textbook has more than what I have said in class on a given topic, sometimes it is the other way around.