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1. Explain for what situation an increase in the price of a input, will not increase the price of the firms cost curve.
2. A firms total cost curve is TCQ=10Q−5Q2+Q3, and its marginal cost curve is MCQ=10−10Q+3Q2. Over what range of output does the production function exhibit economies of scale, and ober what range does it exhibit diseconomies of scale?
3. A firm has the production function Q=min{2L,K}, find the cost function in the long run if wage is $2 and capital rental is $3.
4. A firm has the production function Q=L+2K, and that wage is $2 and capital rental is $3. and that capital is fixed at .
find the cost function in the short run
Find the average cost function in the short run
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