Determine the supply curve

Please provide the solution to the following problem so that i can solve similar other. Please explain in detail as i need to understand. Cornell Pharamaceutical, INc., and Penn Medical , Ltd. supply generic durgs to treat a variety of illnesses. A major product for each company is a generic equivalent of an antibiotic used ...continues

Demand for labor, supply of labor, and income tax

Suppose that the demand for labor by firms is given by L = 1000 - 100W and the supply of labor from workers is given by L = -400 + 100W, where L represents the number of workers and W is the wage in this labor market. a. What are the equilibrium levels of W and L in this labor market? b. Suppose the government imposes an ...continues

Cartels and profit maximizing outputs

Company A and Company B are soft drink companies operating in the same country for two decades. The market demand curve for their soft drinks is given by Q = 119 - 0.5P. Company A's short-run and marginal costs are given by STC = 3q2 + 48q + 572 and SMC = 6q + 48. Company B's short run total and marginal costs are given by STC ...continues

a.What is the profit maximizing output for this company? b.What is the profit (loss) this firm will make at the profit maximizing level of output? c.How many firms will compete in this market at the profit maximizing price and quantity? d.In the long run, what will be the profit-maximizing price and quantity in this market? What is the profit maximizing quantity in the long run and what will the level of economic profit be for each of these N identical firms?

1. A profit-maximizing firm operating in a perfectly competitive market can sell products for $100 per unit. The firm has a cost function represented by: C(Q) = 1000- 160Q + 10QSqr(10 q squared) . The market demand function for this product is Qd = 500 - 3P. a.What is the profit maximizing output for this company? b.Wh ...continues

Micro Economics

A firm purchases capital and labor in competitive markets at prices r=6 and w=4, respectively. With the firm's current input mix, the marginal product of capital is 12 and the marginal product of labor is 18. Is this firm minimizing its costs? If so, explain how you know. If not, explain what the firm ought to do.

Econ Proof/2470

Consider the problems of maximizing u(x) subject to px = y and maximizing v(u(x)) subject to px = y, where v(u) is strictly increasing over the range of u. Prove that x* solves the first problem if and only if it also solves the second problem. If this proof is in the Mas-Collel text or Varian text, let me know and I can loo ...continues

Consumption, income and leisure time

Consider the problem of maximizing u(c,l) subject to pc + wl = w + y, where c is consumption, l (element of (0,1)) is leisure time, and y is non-wage income. Prove that leisure must be a normal good for the labour supply function to be downward sloping. Pleas use direct methods and comparative statics.

Profit Maximization, Cost Minimization: Prove that profit maximization implies cost minimization but not vice versa.

Prove that profit maximization implies cost minimization but not vice versa. I'm looking for a mathematical proof (I think its involving convexity/concavity, I'm not quite sure?) The types of proofs we learned in class are: the proofs i learned in class are Direct Proof. Assume that A is true, deduce various conse ...continues

Utility and Indirect Utility Mathematical Proof

Consider the problems of maximizing u(x) subject to px = y and maximizing v(u(x)) subject to px = y, where v(u) is strictly increasing over the range of u. Prove that x* solves the first problem if and only if it also solves the second problem. This is what I got, however i dont think its entirely correct. To solve the ...continues

show indirect utility function is convex

Show that the indirect utility fuction v(p,y) = [x1(p,y))^rho + (x2(p,y))^rho]^1/rho is a quasi convex function of prices and income