Answered: Suppose that there is an industry with…

Suppose that there is an industry with a big number of firms, each of them with the cost function ci(w₁,w₂,y)=(yi²+1)w₁+(yi²+2)w₂

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter9: Perfect Competition

Section: Chapter Questions

Problem 1QP

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Question

Suppose that there is an industry with a big number of firms, each of them with the cost function c_i(w₁,w₂,y)=(y_i²+1)w₁+(y_i²+2)w₂
a.Find the average cost of each firm.
b.Which is the supply function curve in the short run of each firm?
c.Describe the necessary input set of a firm.

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