Q1.A firm has the long- run cost function C(q)= 3q2+ 27. In the long run, it will supply a positive amount of output, so long as the price is greater than?
Q2. If output is produced according to Q= 4LK,the price of K is $10, and the price of L is $5, then the co st minimizing combination of K and L capable of producing 2 units of output is?
Q3. A firm uses a single input to produce its output, which is sold in a competitive market. It gets
quantity discounts on purchases of its input. If it buys x units of the input, the price it must pay per
unit of input is 289/x+ 3. If it buys no inputs, it doesn't have to pay anything. The firm's
production function is f ( x) = 45x-x2. If the price of the firm's output is 1, the profit-maximizing
amount of input to buy is?
Please share how to solve these.
Oh ok. Thanks.
Here is another question, let me know if you can solve it.
A profit-maximizing competitive firm uses just one input, x. Its production function is q = 8x1/2. The price of output is $24 and the factor price is $8. The amount of the factor that the firm demands is?