Categories
Micro Economics

Adhere to the terms of the file completely and accurately, put references, pay a

Adhere to the terms of the file completely and accurately, put references, pay attention to the solution, avoid plagiarism or copying from sites, and resolve with any other student

Categories
Micro Economics

Flastel currently earns zero economic profit.

You are the CEO of the Flastel Corporation. You have requested an analysis of your firm by two economists.In their analyses, both economists agree with the following facts:
Flastel sells a product in a competitive market.
Flastel hires labor, L, from a competitive labor market and it rents capital, K, from a competitive capital market.
Currently L=100 and K=50.
Flastel’s long-run marginal cost of production is less than its long-run average cost of production at Flastel’s current output, Q.
Flastel’s long-run average cost of production is U-shaped (i.e., with economies of scale followed by diseconomies of scale).
Flastel is currently producing output according to the following Cobb-Douglas production function: Q = 157K0.2L0.7.
The wage paid to workers, w, is $10.The rental price of capital, r, is $40.
Flastel currently earns zero economic profit.

Categories
Micro Economics

Please don’t forget the reference

11.3 Test your Knowledge (Question):
Q1: Discuss how asymmetric information present in second hand car market, often leads to adverse selection for buyers
Please don’t forget the reference