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Exercise Sample

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7 views1 page

Exercise Sample

Uploaded by

hoangminhdung2209
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Exercise Sample

1) In perfect competition market, a firm’s total cost function is given by: TC ($)
= 4Q2 + 16Q + 50
a. If the market price is 96, determine quantity, and profit of the firm.
b. Find out the break even point of the firm
c. Find out the shutdown point of the firm
d. Find out the supply curve of the firm
e. Present the above results in a graph.

2) A monopoly faces a demand function as follow:


D: P ($) = 92 - 15Q
The firm’s total cost function is given by: TC ($) = 4Q2 + 16Q + 50
a. Assuming that the firm wants to maximize its revenue, what is the firm’s
decision?
b. Determine quantity, price and profit of the firm if firm wants to maximize its
profit
c. Assuming that government imposes a specific tax as 19$ per unit on this firm,
how do price and quantity, profit change? Find out the tax burden by firms and
consumers
d. Assuming that government imposes a lump sum tax of 100$ on this firm, how
do price and quantity, profit change?
e. Present the above results in a graph.

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