Question: Please provide step-by-step solution so I can help teach myself how to solve the problem. #2 MICRO F (Nov. 2020) harmonicas. A firm produces harmonicas

Please provide step-by-step solution so I can help teach myself how to solve the problem.

Please provide step-by-step solution so I can help teach myself how to

#2 MICRO F (Nov. 2020) harmonicas. A firm produces harmonicas h using labor (x1) and robots (x2). The cost of labor is w and the cost of robots is w2. The production function is h = A) Does the firm have increasing, decreasing or constant returns to scale? B) Does the firm have increasing, decreasing or constant marginal product for each input? C) Given only your answer to part A, can the firm's cost function be strictly convex ink? How do you know? D) Say something about how a firm with the production function above uses inputs compared to how a firm with production function h = xx; uses inputs E) What are the conditional factor demands for labor and robots when pro- duction function is h = 14I? F) What is the cost function for the firm? G) Confirm Shephard's lemma holds. Let w1 = 1 and w2 = 4. Demand for harmonicas is given by h = 81 - p. H) If the firm acts as a monopolist, how many harmonicas would it sell? D How many harmonicas would be sold by two firms with the production func- tion hi = TIT competing in Cournot oligopoly? J) If the firms collude, the will be caught by the government and have to pay a total fine of Z dollars (each firm pays -). What is the smallest Z that will prevent the firms from colluding? K) Is there a Z such that the firms would choose to collude and consumers would be better off under collusion (receiving the transfer of Z) than if the firms chose not to collude (not receiving the transfer of Z)

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