Условие:
- Consider a firm with standard, U-shaped short-run AC, AVC and MC curves. The price of labor services (
per unit) and capital services ( per unit) is fixed, and the quantity of capital services is fixed in the short run.\na) Produce a graph showing the initial short-run and MC curves. On the same graph, plot the new short-run AC, AVC and MC curves after an increase in .\nb) Produce another graph showing the initial short-run AC, AVC and MC curves. On the same graph, plot the new short-run AC, AVC and MC curves after an increase in . - "Avtonomov Enterprises" faces economies of scale for any positive levels of output. In the short run, when the quantity of capital services this firm is using is fixed, its short-run AC, AVC and MC curves are U-shaped.\na) Produce a graph showing the firm's LAC and LMC curves. On the same graph, illustrate the firm's SAC and SMC curves for an arbitrary
amount of capital services.\nb) Suppose "Avtonomov Enterprises" faces diseconomies of scale for any positive levels of output. Repeat the task in (a). - Consider a University that operates with the following production function:
, where stands for the size of campus, denotes hours of teaching and stands for the number of university graduates (to simplify calculations, assume that is not necessarily integer).\na) What is the type of returns to scale for this technology? Can we observe diminishing marginal returns to capital services? Labor services?\nb) Let the prices of capital and labor be and , respectively. Suppose that in the short run the size of University campus is fixed at . Derive the University's short-run cost function.\nc) Assuming that the University gets a constant for every graduate that it produces, derive the University's short-run direct supply function and illustrate its short-run supply curve.\nd) Derive the University's conditional demand functions for labor and capital services and write down its long-run cost function. Derive the University's long-run direct supply function and illustrate its long-run supply curve.

