Trou Normand

(c) The production function is f (21, 2) = x7 + x2 where a E (0, 1). Here, x1 2 0 and x2 2 0 are inputs 1 and 2, respectively. The unit cost of input 1 is w1 > 0 and the unit cost of input 2 is w2 > 0. Suppose that input 1 is fixed at x1 = 2. Find the short-run total cost function, i.e., find TC' (q) where q is output. (d) Suppose that firm i's profits corresponding to the competitive equilibrium are 20 m = 2 + N 2 ( 4) where N is the number of identical firms. How many firms remain in the market in the long-run? That is, find N*, the number of firms corresponding to the long-run competitive equilibrium.Trou normand (i.e., middle course in a large meal) (a) Inverse demand is 1 p = + VQd where p is price and Q is quantity demanded. Find the price elasticity of de- mand. (b) For i = 1, 2, ..., agent i's inverse demand is p = where p is price and qi is agent i's quantity demanded. Suppose that there are 25 identical agents. Find the market demand