Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question in computer science sir solve this problem and provide me correct solution I ' m in very hurry... Question 1 Consider the following production

Question in computer science sir solve this problem and provide me correct solution I'm in very hurry...
Question 1 Consider the following production function:
y=F(L,K)=4L1K1b
where L and K are the amount of labour and capital used in the production process, and y is the output. Throughout this question, the output price p is 3 and the rental rate of capital r is 1.
We will first consider a firm in the short run, where the amount of capital is fixed at K=64. The fixed cost is therefore 64.
(a)(Level A) Is there diminishing returns to labour? Explain.
(b)(Level A) Suppose the wage rate w is 1. Find the profit-maximising choice of L. Calculate the profit-maximising output level and the maximised profit. (There is no need to check the second order condition - but of course you can check if you want to.)
(c)(Level A) Now suppose w increases to 2. Find the profit-maximising choice of L. Calculate the profit-maximising output level and the maximised profit. (There is no need to check the second order condition.) You can leave your answers in square roots.
(d)(Level A) What is the change in L when w increases from 1 to 2 in the short run? You can leave your answers in square roots.
Question 2[36 marks]
A mass of consumers is uniformly distributed along the interval 0,1. Two firms, A and B, are located at points 0 and 1 respectively. We denote by p, the price of firm iinA,B. A consumer located at point xin[0,1] obtains utility UA(x)=u-pA-tx2 if he consumes from firm A, and UB(x)=u-py-t(1-x)2 if he consumes from firm B. In the following, we assume that the groes utility u is sufficiently high, so that the market will be covered and all consumets will get positive utility in equilibrium. Both firms have a cost function equal to Ti(q1)=(1+x)qi, where you should substitute x for the last number of your student ID number.
(a) Find the demand function for both firms.
[5 marks]
(b) Assume firms set their prices simultaneously. Solve for the Nash equilibriura prices, and compute the equilibrium profits.
[6 marks]
(c) Now, assume a Stackelberg timing, where firm A is the leader. Explain briefly why we should not use the Nash equilibrium concept to solve this game, and solve for the equilibrium prices and profits.
[8 marks]
(d) Compare the results obtained in parts (b) and (c) and explain the intuition for such difference Are the equilibria efficient?
marks]
(e) Suppose that there was a technology that allowed firm A to credibly commit not to change its price (this option to commit would make firm A the Stackelberg leader, as in part c). If only firm A had access to this technology, how much would firm A be willing to pay for it? How would your answer change if the technology was auctioned to the best bidder (between firms A and B?
[4 marks]
Assume that firms A and B can perfectly discriminate between locations. That is, firm i chooses a prioe p1(x) for each location xin[0,1]. Firms now compete by simultaneously choosing the pricing functions p1() and p2(). There is no possibility of arbitrage, and if a consumer may be indifferent between firms A and B, they go to the closest firm.
(f) Find the Nash-equilibrium pricing functions. That is, you need to find the equilibrium prices of every firm in every location.
[8 marks]
Please Please Please Let an Experts Man, Doctor in Compiler Design To solve this Question
Don't use AI I WANT ONLY EXPERT PERSONS TO SOLVE IT
Question In Theory of Compilers
Q1 generate target code for the following source language statements :
Solve it like this Example
target code for the assignment statement d:=(a-b)+(a-c)+(a-c) can be translated into the foll sequence of three address code:
Three Address Code:
\table[[Statement,Code Generated,\table[[Re
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Databases questions

Question

Define self-image. (p. 24)

Answered: 1 week ago