微观经济学作业答案3.doc

1、Managerial EconomicsHOMEWORK SET#3Name:Class:Student #: (Due day: Next class)Part 1:1. When the average product is decreasing, marginal producta.equals average product. b.is increasing.c.exceeds average product. d.is decreasing.e.is less than average product.Choose: e)The next two questions refer to

2、 a firm in a constant- cost industry with ATC(q) = 2,000/q + 100 + 5q and MC(q) = 100 + 10q.2. The long-run equilibrium price equals:a. $100 b. $200 c. $300 d. $500 e. None of the above is correct.Choose: c) Find minimum ATC by setting ATC = MC; this yields q = 20. Plug q = 20 into ATC to find the l

3、ong-run equilibrium price of $300.3. Demand for industry output has just increased. If the market price initially rises to $600, each firm in the long run will produce:a. 20 units b. 50 units. c. 88.7 unit d. 100 units. e. More information is needed.Choose: a) The long-run equilibrium will again hav

4、e each firm producing at minimum ATC. Each firm produces 20 units, as in Question 3.4. A straight-line isoquanta.is impossible.b.would indicate that the firm could switch from one output to another costlessly.c.would indicate that the firm could not switch from one output to another.d.would indicate

5、 that capital and labor cannot be substituted for each other in production.e.would indicate that capital and labor are perfect substitutes in production.Choose: e)5. A farmer uses M units of machinery and L hours of labor to produce C tons of corn, with the following production function C = L0.5 + M

6、0.75. This production function exhibitsa.decreasing returns to scale for all output levelsb.constant returns to scale for all output levelsc.increasing returns to scale for all output levelsd.no clear pattern of returns to scaleChoose: b) 2L0.5+2M0.75=2C6. The difference between the economic and acc

7、ounting costs of a firm are a.the accountants feesb.the corporate taxes on profitsc.the opportunity costs of the factors of production that the firm ownsd.the sunk costs incurred by the firme.the explicit costs of the firmChoose: c)7. Price ceiling are inefficient because:a. both producers and consu

8、mers lose.b. Producers lose, consumers may gain or lose, but a loss occurs on net.c. Producers lose, consumer gain, but a loss occurs on net.d. Producers and consumer may gain or lose, but a loss occurs on net.e. None of the above is correct.Choose: b) Consumers gain from a lower price, but lose bec

9、ause they are able to buy less. Produces clearly lose from the regulated price. There is always a welfare loss from price ceilings ( assuming that the price ceiling is binding).8. Assume that a firm spends $500 on two inputs, labor (graphed on the horizontal axis) and capital (graphed on the vertica

10、l axis). If the wage rate is $20 per hour and the rental cost of capital is $25 per hour, the slope of the isocost curve will bea.500.b.25/500.c.4/5.d.25/20 or 1/4.Choose: c) 20L+25C=500, C=-4/5L+209. Suppose that the price of labor ( ) is $10 and the price of capital ( ) is $20. What is the equatio

11、n of the isocost line corresponding to a total cost of $100?a.PL + 20PKb.100 = 10L + 20Kc.100 = 30(L+K)d.e.none of the aboveChoose: b)The next three questions refer to the alfalfa market described in Figure 1.SD162025Tons of Alfalfa(millions)305075Price ($/ton)FFigure 110. If the government purchase

12、s enough alfalfa to raise the price from $50/ton to $75/ton, the cost of the program will be:a. $100 million. b. $225 million.c. $315 million. d. $675 million.e. None of the above is correct.Choose: d) The government pays $75/ton for the surplus of 25 16 = 9 million tons: 75(9) = $675.11. If the gov

13、ernment raises the price to $75/ton, producer surplus will increase by:a. $400 million. b. $500 million.c. $562.5 million. d. $1,875 million.e. None of the above is correct.Choose: c) Producer surplus increase by the area of the trapezoid between P = $50 and P = $75, and Q = 20 and Q = 25 million: $

14、25(20 + 25)/2 = $562.5 million.12. Suppose the government decides to support a price of $75/ton by paying producers not to produce the excess supply of alfalfa (which is 25 16 = 9 million tons). The minimum cost of this program will be :a. $157.5 million. b. $202.5 million.c. $315 million. d. $1,875 million.e. None of the above is correct.Choose:b) To idle acreage, producers must be paid at least the shaded area in Figure 1: 0.5(25 16 )(75-30) = $202.5 million.SPrice($/unit)75501625D30Ton(millions)2013.Producer surplus in a perfec