IGL1 Economic Model of a Firm X . Production: Qp=f(L,K,F) Chapters 7-9 - Efficiency: Maximizing Output Produced (Qp), given L,K,F . Total Cost: TC=f(Qp, PL, PK, PF) - Efficiency: Efficiently Maximizing Qp and Choosing Combination of L,K,F (given PL, PK, PF) that minimizes TC . Demand: Qa=f(P, Psub, Pcomp, INC, ADV, etc. . Total Revenue: TR=P*Qd Chapters 3, 4, 10-14 - TR depends on Price (P) charged and Quantity Sold (Qd) - Price depends on customers and competition/rivalry . Profit: n=TR-TC=P*Qd-AC*Qp Profit depends on competition, pricing, ability of new firms to enter (barriers to entry), management practices, etc. 1 a) To help us assess firm performance, we introduced a model entitled "Economic Model of a firm" above .Provide a complete, explicit specification of all the components of the Economic Model 1b)Consider the US Textile Industry. The US Textile Industry has exhibited significant decline in productivity over time. Use the "Economic Model of a Firm" to clearly/explicit illustrate the effect of financial performance of Textile Firms. 1c) Currently firms are experiencing rising costs in the price of fuel. Use the "Economic Model of a firm" to clearly/explicit explain the effect on financial performance of a firm (e.g profit) 1d)Consider a major league baseball team such as the Houston Astros. Suppose Major League Baseball significantly increases restrictions on the ability of major league players to switch teams in the free agent markets. "Use the Economic Model of a firm" to clearly/explicit explain the effect on financial performance of the Astros