ECON 2020 Midterm: Exam-ECON2002-2005April
Document Summary
A competitive industry consists of 1000 producers, each with the production function denoted &s, ! In the short-run k is fixed at 25 units, while i is variable. K is , and the price for z is . 2 l/2, where y is output quantity, k, antd l are the two input a) b) c) d) Find the total product function for each producer. Find the short-run marginal cost function for each producer. If the market equilibrium price is , at the market equilibrium quantity, determine whether the market equilibrium output will expand or contract in the lons run. Each firm producing in a perfectly competitive product market has the following production function. !, = il", where y, is the output quantity and l, is the input quantity. The product market demand function is . r,,, : 600 - 3p where x,,, is market quantity demanded, and p is the product price.
