COMM 220 Lecture Notes - Lecture 6: Fixed Capital, Production Function, Economic Surplus
21 Oct 2015
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Comm 220 practice problem set 3: paul spends two hours to wait in line to buy a ticket to the bon jovi concert. He could have used the two hours to tutor a student for an hour or work a part-time job which pays an hour. Paul"s friend, jonathan, is willing to pay him for his ticket. Attending the concert will take approximately three hours. What is the average cost per unit? (c) suppose the unit cost of labour increases to . What is the average cost per unit: suppose that there are ten firms in an industry. For six firms, mc = 4q and minimum avc = 12. The other four firms have mc = 8q and minimum avc = 18. 1: a competitive firm has the short-run cost function: c(q) = 300 + 80q 6q2 + 0. 2q3 (a) find the firm"s ac, avc and mc functions. Sketch them on a graph using q =
