9 questions from Microeconomics. Heres a few examples (rest can be found in the files attached):
We are first in a pure and perfect competition framework. A firm X produces a
quantity QX of plastic bags made using oil, which the firm sells to supermarkets at
the equilibrium price p
∗ = 80. The total cost of production function can be written
this way:
CT (QX) = 2Q
2
X + 20QX + 200
a. Find the fixed cost, the variable cost and the marginal cost of production function of the firm X.
b. Write down the optimality condition of the production of a firm in perfect
competition. Determine the number of plastic bags produced at the optimum.
A competitive firm has a marginal cost of producing output q given by MC(q) =
3 + 2q. The market price of the product is $9.
a. What level of output will the firm produce?
b. What is the firm’s producer surplus?
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