Q1) A firm has the cost curve C ( q ) = 100 + 150 q - 46 q 2 + 5 q 3 . What are the equations of the firm's marginal cost, average variable cost, and average cost curves? What are the minimum values of marginal cost, average variable cost, and average cost, and at what levels of output do they occur? What is the value of marginal cost when average variable cost and average cost are at a minimum?

Q2)A firm has the cost curve C ( q ) = 25 + q 2 . Show how the firm's average cost varies with output. Is there a minimum average cost and, if so, at what level of output is average cost minimized?

Q3)Canada removed all duties and quotas on imports from Bangladesh in 2003. Since that time, Bangladesh has become the second largest source (after India) of Canadian merchandise imports from South Asia. Totalling over C$1 billion, the vast majority of these imports are garments and textile products. Low labor costs are a key attraction for Canadian retailers. Suppose the production function for a textile firm is q = K 0.5 L 0.5 . What would be the minimum cost of producing 1,000 units of output if the cost of capital is the same in Country 1 and Country 2 (that is, r = Tk20,000 per month in each), but the cost of labor in Country 1 is half of that in the other country (that is, w 2 = 2 w 1 = Tk10,000 per month)?