ECON 212 Quiz: ECON 212quizquiz4a.f03
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ECON 212 Full Course Notes
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Set up the tangency condition to determine the relationship between capital and labor. Plug this result into the production function to determine the optimal quantities of capital and labor. 2: [2 marks] derive the long-run total cost function as a function of w , r , and q . To find the long-run total cost function, plug the optimal quantities of capital and labor from part a) into the total cost function. [5 marks] in a certain market in the long-run, each firm and potential entrant has a long-run total cost curve, per year. P where q is thousands of units: [3 marks] find the long-run equilibrium price and quantity per firm. Thus, the equilibrium quantity per firm is q = 0. 25. P=ac or p=mc, evaluated at equilibrium quantity, i. e. 5. First find the total market demand at equilibrium price. To find total market demand, plug the market equilibrium price into the market demand curve.
