Problem sheet 1 - Cost functions and firm size
Advanced microeconomics - Autumn 2014
GUC
These graphs discuss the solutions to problem sheet one.
You may also use this Maxima code for solving the long-run market equilibrium (question 7).
eq1: AVC = (1+q*(q+12)/4)/q;
eq2: Q = n*q;
eq3: P = 8 - 4/5*Q;
eq4: AVC = P;
eq5: n= 3;
a:solve([eq1, eq2, eq3, eq4, eq5], [q,Q,AVC,P,n])$
float(a);
Have fun!
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Prof. Dr. Christian Mueller
Head of Department
German University in Cairo - GUC
Faculty of Management Technology
Department of Economics
Al Tagamoa Al Khames
11835 New Cairo City
Egypt
christian.mueller@guc.edu.eg
Tel: +20-1-276952097
http://mgt.guc.edu.eg
http://www.s-e-i.ch