2. Suppose the production function of a firm is given by f (x₁, x2) : = 2x1 + 4x2. (a) Calculate the conditional demand functions of the firm assuming w₁ = 2, w₂ = 3, and y = 8. (b) Calculate the minimum cost of the firm to produce 8 units of the good when w₁ = 2 and w2 = 3.

Suppose a firm engaged in the illegal copying of DVD’s has a daily short run total cost function given by: STC = (q^2)+25 If pirated DVD’s sell for $20, how many will the firm copy each day? What will its profits be? What is the firm’s short run producer surplus at P=20? Develop a general expression for this firm’s producer surplus as a function of the price of pirated DVD’s.

1. A company has the following average income (demand) curve: P=100-0.01Q. Where Q is weekly production and P is price, measured in cents per unit. The company's cost function is given by CT = 50Q + 30,000. Suppose the firm maximizes its profits.a) What is the level of production, the price and the total profit per week?b) The government decides to impose a tax of 10 cents per unit on this product. What would the level of output, price, and profit be as a result of this? CT(Total cost)

Road Runner Co is a Pakistani manufacturer making Bicycles. It exports to two markets,Bangladesh and Sri Lanka. Demand for Bicycles in thesetwo markets is given by the following Functions: Bangladesh                 Q1 = 12 – P1 Sri Lanka                    Q2 =   8 – P2 Where Q1 and Q2 are respective quantities sold (in thousands) andP1 and P2 are the respective prices (in Pak. Rupees per unit) in the two markets. Total cost function is C = 5 + 2 (Q1+ Q2) (i)  Company is effectively able to price discriminate in the two markets. What will be the total profits? (ii)  Suppose the company does not engage in price discrimination. By charging the same price in the two markets what are the profit maximizing levels of price, output, and the  total profits? (iii) Analyze, with graphs, the two alternative pricing strategies available to the company.