Dorado Posted December 2, 2011 Posted December 2, 2011 Hey I know this is strange but I'm desperate. Is anybody here good with microeconomics? I'm trying to finish a homework assignment and I'm stumped beyond measure and my prof. won't help. And y'all seem like knowledgeable people.
J.D.Ironsmith Posted December 2, 2011 Posted December 2, 2011 Dorado, Sorry I can't be much help on your homework assignment... though I am getting more experience with microeconomics.... under the current administration the state ofaffairs have continually caused my economics to get much more MICRO!!!!
Marshal Mo Hare, SASS #45984 Posted December 2, 2011 Posted December 2, 2011 half a century ago I was da**ed good at it, but there have been a bunch of new theories dreamed up since then.
Dorado Posted December 2, 2011 Author Posted December 2, 2011 Well it was worth a shot. My girl's father was an economics major in college and he could figure out what was going on with this either. Oh well, thanks anyway.
Chickahominy Charlie Posted December 2, 2011 Posted December 2, 2011 I took macro and micro about 25 years ago......which means I don't know squat. It's always about supply and demand, ain't it? Good Luck! Chick
J-BAR #18287 Posted December 2, 2011 Posted December 2, 2011 Microeconomics: a little money is good. Macroeconomics: more money is better. Glad to help.
Hardpan Curmudgeon SASS #8967 Posted December 2, 2011 Posted December 2, 2011 Microeconomics: a little money is good. Macroeconomics: more money is better. Glad to help. Well now, that 'bout sums it up!
Whiskey Business Posted December 2, 2011 Posted December 2, 2011 Dorado, What's the question/assignment?
Marshal Mo Hare, SASS #45984 Posted December 2, 2011 Posted December 2, 2011 Micro economics is when government inteferes with small business. Macro economics is when government interferes with big business. No?
Dorado Posted December 3, 2011 Author Posted December 3, 2011 Dorado, What's the question/assignment? Whiskey if you can help, I need you. Here's the problem: Assume a firm faces the following Short run Total Cost and Short run Marginal cost function. STC=0.02q2-4q+800 a ) Assuming the firm is a price taker, what quantity will the firm produce in order to maximize its profits if the market price for its product is 4? B ) What is the firm’s profit or loss at this quantity? c ) If the entire market produces 10,000 units how many companies are there in the short run? d) What is the market price and the total number of firms in the long run? I've been working on this one for about a day. Literally
Whiskey Business Posted December 4, 2011 Posted December 4, 2011 Dorado, That is wicked! It's been awhile since I had something like that, and I may be wrong so fact check. Start by plugging in different values into the equation STC=0.02q2-4q+800 till you get the smallest possible positive value (STC). The q value is the quantity the firm will produce to maximize profits. Subtract the STC from your market price of 4. That will be the profit. Divide the 10,000 units by the q value. This will give you the number of firms in the short term market. As far as long term, that's where it gets more complicated, since everything is a variable. Need more info for that one. Hope this helps.
Tom Bullweed Posted December 4, 2011 Posted December 4, 2011 I took several economics classes about eight years ago: 800 seems to be the start-up fixed cost. In the longrun it has no bearing since it only has to be paid once. Recalculate STC = 0.02Q2 -.4Q
Matthew Duncan Posted December 4, 2011 Posted December 4, 2011 Dorado, That is wicked! It's been awhile since I had something like that, and I may be wrong so fact check. Start by plugging in different values into the equation STC=0.02q2-4q+800 till you get the smallest possible positive value (STC). The q value is the quantity the firm will produce to maximize profits. Subtract the STC from your market price of 4. That will be the profit. Divide the 10,000 units by the q value. This will give you the number of firms in the short term market. As far as long term, that's where it gets more complicated, since everything is a variable. Need more info for that one. Hope this helps. Shucks! I new that! What did she say?
Marshal Mo Hare, SASS #45984 Posted December 4, 2011 Posted December 4, 2011 Isn''t that straightforward calculus, take the derivative and solve, and voila q=100 or something like that?
Dorado Posted December 4, 2011 Author Posted December 4, 2011 Dorado, That is wicked! It's been awhile since I had something like that, and I may be wrong so fact check. Start by plugging in different values into the equation STC=0.02q2-4q+800 till you get the smallest possible positive value (STC). The q value is the quantity the firm will produce to maximize profits. Subtract the STC from your market price of 4. That will be the profit. Divide the 10,000 units by the q value. This will give you the number of firms in the short term market. As far as long term, that's where it gets more complicated, since everything is a variable. Need more info for that one. Hope this helps. Thanks Whiskey, I think I may have it. You know what's so funny about this one, it's the easy one.
Dorado Posted December 4, 2011 Author Posted December 4, 2011 Isn''t that straightforward calculus, take the derivative and solve, and voila q=100 or something like that? The derivative gets you around -80. still better than the imaginary numbers I was getting before. lol
Whiskey Business Posted December 4, 2011 Posted December 4, 2011 One of the best teachers I ever had was a Macroecon college professor. This guy handed us extremely complicated assignments, but he would take as much time a you needed, even on an individual basis, to explain everything. The first test I failed like I have never failed a test before. Ended up with an A for that classs though.
Marshal Mo Hare, SASS #45984 Posted December 4, 2011 Posted December 4, 2011 The derivative gets you around -80. still better than the imaginary numbers I was getting before. lol I don't think so. y = 0.02Q2 -.4Q +800 (0.02Q squared, right?) dy/DQ = .04Q -4 =0 .04Q = 4 Q=100 Right? I could be wrong, I have forgotten more math than a lot of math PhDs ever knew. If I cheat and use a spread sheet, I get Q STC 70 618 80 608 90 602 100 600 110 602 120 608
Badger Mountain Charlie SASS #43172 Posted December 4, 2011 Posted December 4, 2011 And I am sitting here thinking "A PENNY SAVED IS A PENNY EARNED".
Dorado Posted December 5, 2011 Author Posted December 5, 2011 Y'all don't worry about it. I've got it done. and I'll be sending it in here in just a little bit. But thanks everyone. Hopefully this means that I get to graduate next Saturday. It all comes down to this paper. lol How's that for pressure!
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