course name : Microeconomics

V. Calculation questions. ( 25 points ) 1. Given the cost function of a firm described as TC = Q3-12Q2+600+400 1 What are the fixed cost and variable cost? (4 points) 2 What are the AC, MC? (6 points) IV. Drawing and analysing. (25 points) 1. In the coordinates below, use the indifference curve and budget constraint line to determine the consumer equilibrium . Then , give the new equilibrium after the price of GOOD1 droped down. (10 points) good2 4 4 goodl 2. Draw the typical AC,AVC,MC curves of a firm in short run . Suppose it is in a perfect competition market, and the price curve is below the AC curve but above the AVC curve. Then D make the price curve , MR curve. 2 Does the firm make profit or loss? @Should the firm stop production or not? why? (15points) 2. Given the production function of a firm as Q =21L+9L? - 132. Figure out the APL(average product of labor) and the MPL (marginal product of labor) of the firm. ( 5 points) 2 If the firm now hired 3 labors, is this a reasonable number? If not, what is the reasonable range of labor use? ( 10 points)