Managerial Economics Homework-3.docVIP

Managerial Economics HOMEWORK SET#3 Name: Class: Student #: (Due day: Next class) Part 1: 1. When the average product is decreasing, marginal product a. equals average product. b. is increasing. c. exceeds average product. d. is decreasing. e. is less than average product. The next two questions refer to a firm in a constant- cost industry with ATC(q) = 2,000/q + 100 + 5q and MC(q) = 100 + 10q. 2. The long-run equilibrium price equals: a. $100 b. $200 c. $300 d. $500 e. None of the above i