ECO 540 study guide

ECO 5401640 Market Structure and Firm Behavior Homework 5 1 . An economist estimated that the cost function of a single-product firm is: C(Q) = 50 + 200 + 2502 + 503. Based on this information, determine the following: For each part below, show the general equation used to answer the question and answer the question for the particular quantity given. a. The xed cost of producing 10 units of output. b. The variable cost of producing 10 units of output. 0. The total cost of producing 10 units of output. d. The average fixed cost of producing 10 units of output. 9. The average variable cost of producing 10 units of output. f. The average total cost of producing 10 units of output. 9. The marginal cost when Q = 10. 2 2. The cost function for multiproduct rm is given by C(Q1. 02) = 90 - 262102 + (Q)2 + (Q2) . a) Determine MC1(Q1,QZ) and MCZ(Q1,QZ). b) Determine if there is cost complementarity C) Determine if there are economies of scope 3. Use the following payoff matrix for a simultaneous-move one-shot game to answer the accompanying questions. - Elli-I- a) Do any of the players have a dominant strategy? If yes, what is it? b) Determine Nash Equilibrium (or Equilibria) in the game