National University of Singapore EC2101 Microeconomic Analysis I Department of Economics Semester 2 AY 2012/2013

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Homework 2 Production, Costs, and Short-Run Perfect Competition

Due date: 5 Apr 5 pm Question 1 Answer the following questions. Briefly explain your answer. a) You obtained the following short-run cost information of a firm. When the firm produces 2 units of output, its total cost is $500,040. When the firm produces 10 units of output, its average fixed cost is $50,000. What is the average fixed cost when the firm produces 2 units of output? What is the average fixed cost when the firm produces 5 units of output? b) A profit-maximizing firm in a perfectly competitive market currently produces at an output level where its short-run average total cost curve is upward sloping. What does this imply about the firm’s economic profit? Question 2 A firm produces a product with labor and capital. The price of labor is w=2, and the price of capital is r=1. a) Suppose the production function is q= LK . What is the equation of the long-run total cost curve? Suppose in the short run, capital is fixed at K=4, what is the equation of the short-run total cost curve? b) Suppose the production function is q= L+K . What is the equation of the long-run total cost curve? Suppose in the short run, capital is fixed at K=4, what is the equation of the short-run total cost curve? c) Suppose the production function is q= min(2L,K) . What is the equation of the long-run total cost curve? Suppose in the short run, capital is fixed at K=4, what is the equation of the short-run total cost curve? Question 3 A firm has production function q=2LK +K . The price of labor is w=1 and the price of capital is r=1. (L and K do not have to be integers.) a) Suppose in the short run, capital is fixed at K=5. What is the equation of the short- run total cost curve? b) In the long run, what is the cost-minimizing input combination when the firm produces q=18? What is the level of total cost at this input choice? c) Suppose now w=8 and r=1. What is the long-run cost-minimizing input combination when the firm produces q=3? What is the level of total cost at this input choice? Suppose in the short run, capital is fixed at K=1. What is the level of total cost in the short run if the firm produces q=3?

National University of Singapore EC2101 Microeconomic Analysis I Department of Economics Semester 2 AY 2012/2013

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Question 4 In a perfectly competitive industry, every firm has identical cost structure. The short-run total cost curve of an individual firm is STC(q)=40+10q+0.1q2. Currently there are 10 firms in the market. The market demand curve is D(P)=700- 10P. a) What is the equation of an individual firm’s short-run supply curve? b) What is the short-run equilibrium price and quantity in this market? c) At the equilibrium, what is the total producer surplus in the market? What is the profit of an individual firm?

Spanish II Midterm Exam

Name: _Dietrich Harmon____

Student Number: __Jm1208803____

Directions: Type your answers in the submission box in the course. Use complete sentence (when applicable), correct grammar, and correct spelling. All answers should be written in Spanish.

1. Srta. Nuncio’s class has written some classroom rules. Complete the sentences with the appropriate word or words. Modelo Para un examen nadie puede llegar tarde.

En un examen los estudiantes deben _contestar_ todas las preguntas para sacar una buena nota.

2. Arturo’s father is asking him about his plans for tonight. Write the possessive adjectives that best complete the conversation. Modelo: --Arturo, ¿de quiénes son estos zapatos? ¿Son tuyos?

-- No, no son míos Son de Javier. -- Oye, Arturo. ¿Es esa corbata tuya?

-- No, no es _mio___. Es de Javier.

Spanish II Midterm Exam

3. Marisol is an exchange student from Ecuador living in the United States. In an e-mail to her best

friend, she writes about her daily routine and the routine of her roommate (compañera de cuarto),

Jennifer. Complete Marisol’s sentence from the email by writing the reflexive verb that corresponds

to the picture.

Mi compañera de cuarto, Jennifer, _se levanta_ más tarde que yo

4. Eugenio is talking about what he used to do when he was a child. Write the appropriate vocabulary word or words in Spanish that match the meanings of the underlined words.

Casi siempre jugaba en el patio de recreo con mis amigos.

Casi siempre:____la mayor parte de tiempo__

5. Eugenio is talking about what he used to do when he was a child. Write the appropriate vocabulary word or words in Spanish that match the meanings of the underlined words.

Cuando era pequeño tenía muchos juguetes.

Cuando era pequeño: _cuando yo era un niño______

Spanish II Midterm Exam

6. Rebecca is training to be a firefighter. Complete her trainer’s remarks by writing the opposite of the underlined word.

A veces hay muertos pero hay que recordar que muchos salen _fallecido__. Y nuestra misión es salvar vidas.

7. Answer the following question. Follow the model.

Read the description of Ana’s eighth birthday celebration. Write bien or mal to describe how the guest behaved. Then write a sentence that supports your answer.

¿Cómo se portaba Susana?

¿Por qué crees eso?

1. Todos los niños le regalaron a Ana muchas cosas fantásticas. Había muñecas, juguetes,

animales de peluche … y más cosas. Susana le regaló un oso de peluche enorme. Ana estaba

contenta y besaba y abrazaba su oso nuevo. Pero cuando Susana la vió empezó a llorar porque ella

quería jugar con el oso.

2. Cuando llegaron los invitados, todos los niños saludaron a los padres de Ana. Los niños, con

buenos modales, le dieron la mano a la madre también. Cuando Luisa llegó tarde, los niños jugaban

con los regalos de Ana y los padres preparaban los refrescos. Luisa quería jugar también, pero

primero saludó a los padres.

3. La mesa de refrescos tenía muchas decoraciones bonitas. Había papel picado, globos y flores.

Cuando los invitados comían el pastel y el helado, el hermano menor de Ana corría alrededor de la

mesa. Todos los niños se reían, pero la madre, ¡no!

Spanish II Midterm Exam

9. An elementary bilingual teacher asks you to come to her class to talk to her students about how you

used to celebrate the holidays with your family. First you want your Spanish teacher to hear what

you plan to say. Be sure to include where you used to celebrate most family holidays, what you used

to do, who got together with you to celebrate, and what your favorite family holiday was and why.

Your answer should be 1-2 paragraphs.

10 While flipping through a magazine, Susi sees an article listing tips for driving safely. Write the

numbers of 2 suggestions from the list that should NOT appear in the article.

Los principales consejos para manejar

1. Para completamente en la señal de parada.

2. Maneja despacio si estás cerca de una escuela y hay niños en el patio.

3. Si llueve, ve más rápido.

4. En la carretera, es importante manejar más rápido que los demás.

5. Mira a la izquierda y la derecha al entrar en un cruce de calles.

6. Ten mucha prisa al pasar por un semáforo amarillo.

7. Si estás aburrido en el coche, habla por teléfono.

8. Para completamente y espera si pasan los vehículos de emergencia, como las ambulancias.

9. Deja pasar los autobuses de las escuelas.

10. Cuando quieres ir al banco sólo por un momento, puedes dejar el coche en medio de la avenida.

Spanish II Midterm Exam

11. Write the sentences Margarita would say to indicate that she has completed the errand specified in the prompt. Use the appropriate direct object pronouns (lo, los, la, las).

Modelo sacar un libro de la biblioteca Lo saqué.

echar una carta

12. Your teacher has to decide who will share hotel rooms during your class trip to Mexico. What could you say about your morning routine so that your teacher can choose your roommate? Give as many details as possible so that he or she can determine if you are really compatible roommates.

Your answer should be 1-2 paragraphs in length.

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