dse 2012 micro

[econ14]

A rm producing hockey sticks in Punjab has a production
function given by Q = 2p
KL where K stands for capital, L stands for labour
and Q stands for output. The rental rate of capital is Rs 1 and the wage rate
is Rs 4. What will be the rm's cost function?
(a) 2Q
(b) Q
(c) Q2
(d) 2Q2
 plz help

[The Villain]

first find MPl/MPk and equate it to w/r where u get K=4L.Subsitute this in the production function.We get Q/4=L.
Now put values of K and L in terms of Q in cost function C=wl+rk.
Finally we get 2Q.

[econ14]

thanx yer 

[econ14]

Consider a homogenous goods market with the demand
function q= 30-p  where Q and P denote quantity and price respectively.
There are two firms playing a price game in the following manner: firm1
quotes a price and then firm2 chooses a price. When they charge the same
price they share the market equally and otherwise the market demand goes
to the firm charging lower price. Firm 1 has a capacity constraint at the
output level 5 units such that upto five units the marginal cost of production
is Rs 3 per unit of output, however beyond 5 units it cannot produce any
output. Firm 2 does not have any capacity constraint, it can produce any
amount with the marginal cost Rs 6. What would be the equilibrium price
in the market?

a.  3
(b) 6
(c) 6- E ( E is small positive number)
d.  6+ E