@ jose Js SI Ow ey PCC Le h He gr ph a C40 of tke [eloving a) TRe fms exe S04 pol The ficm’s eprrsion pel is Ho \ Qae Con nechin al tom gency WX porns betwen 150 quot Cones NS dnl isocest Dinos. Th gives lp L S SS oph made chores inpubs as Nc o2 5 He fin decides ‘to expend conf Increase cub put (Q,,Q,- ) assunrag inpuk pore’ s ane constant (wiv) % abeach port Hus cond te, idl oe rae MRTS = Mh WC consort & RTS equal ear ab ald points a, bee) B) Derivation of He sorb yum supply cane fer « pte toby fin § Kee G fast ae pega a f Nn | fe, tb a ol 9, O50 00,0, The short “rum sup ind rceubec The plcbon up between qtamb by Tt vs dhe lip worcl bopaing Su tied amd diffaet tmedee} perv s- pod oe 1c afte ib intersects AVC (p) Below He pbesechor of IVC, Mo fe wll oe Wo Mow te cone VC 0 Thi hee to Ato, Between DUC amd AIC te firm sh@ rrcunes tosses bub bosses oe Lay Hhan the FC so the frm pervs proderog Ch). Athy be fron ere. plopits omy P fighs Hon P-ATC) GQ o) Me iso quod may in the case of drcreacing (Hern fosccll Decree sing relems fo scale mo, | € Wy Healt 0s inputs clube Ho oedpud I\ : ack neve ses by lors Hon Be cleeble | x This thtens Mick 40 clouble ody eae ik (from Qy Q,) we need Morey, fo pes Aeubhe Hy intl. So Me Chshong inereg ses d) the tebabion ship bhunn TR, HR, AR ond price cleshicity of dncg/ polis t rice toBrng Piro im prefect, peer iEl>4 ehst c ion pela ebeof , et ean —KR>AR=D =P aw ef Pet a. age ea & qe 2Q ee (oblate fiom cabs (P-O) Ap-1E reine pee nil sob HR = af tel fa revenge from inc. quadity by 1 ent. for amon pelistlbs denen cove 15 | A Tne «hers coutg mob hemanol Whi equads PQ | domard cane v D=P=HR = HR IS price decreucos quaditg YA Creu Ses. The firm con produce ony ad ty of trict clasicily ef dbmend is 60 ab indeger| MHS given price (dekSineel ly Ko 4 Cpe tim wecons greats, Hn. | MORE). The price elesticvly Pcbomeng Oe hk Ke mid po. Pb eiiel A hay ened OA Pe) hae ange hil ei (queks is intlles tec by Oe j The TR is ar upword sbopmg Bap fades Yro af BR-O CE= Feo as pre is ae oi E~ AA Pee \ plow c a “Ge HR is below ARand itis decrtising. E+ is postive 4 boag dS Ti Riisunacrote nee teL, paghe yale . (ur, R= O anf TR teaches mee etn. Hlevonds | TR decreeses ond HR is negot.ve (2\ Suppose 4 freon's worsted ebems fo scale produche. Punchion ragurres 40 wae Labor and capital 11 @ fvech rabo of two vehes and tne methine be produce 10 uni ks of out pot. Asseno Gat w= F2 ,y= $3 Calculate TC, AC tml HC wha cukpit taunts (Ola ee) so (yeaph the perets Cost comes ZI tee cee Cea) —AS . Te = Qt Acs NCA we @) | ei sia 1c a £10 | 2s| 4\ + 0.2] 07 a ( gil 2444! 0.7/ 04 Me Fy 30 | 6 |3 |adjo.707 2 to 20 720 4O So 4olg |+|28\0.40F Na 50 \10|5 |36 |o. HO an ace te |______>@QEB) A ponopott hos te following 10hel cosh fu chion © An Aoveaemd Cunse B what output Buob choell Ie ») (abalepe He si29 DQ What ae fa | he 30 w oro & 126 & a4 < laa Po will the rnonopolii) ch Mia See qrephec 1 14 4o s6 66 24 53 TR Oo 30 56 78 56 110 Tv | HC -t | -10| 28 oO | 46 14g. | 10 aa | @ Pan 30 26 ar 18 asia [6 lao 120 47 | 40 0] 18 G oo HW aQ=6 b) 1-2? 100 120 oO P= 20 d) 126 724 8 whee Hc-HR oy oS wx AS produced lo eA 20 raft, 9 f pip ov Loss ab He fro, oth are [HR