A firms inverse demand function is p=400-4Q, C=500+200Q a) Find the profit-maximizing outputs under competitive and monopoly

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A firm’s inverse demand function is p=400-4Q, C=500+200Q

a) Find the profit-maximizing outputs under competitive and monopoly market;

b) Find the profit-maximizing prices under competitive and monopoly market;

c) Find the maximum profit under competitive and monopoly market;

d) Whether the firm shut down in the short run under competitive and monopoly market? Why?

e) Find the dead weight loss.

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Managerial Economics And Strategy

ISBN: 9780134899701

3rd Edition

Authors: Jeffrey M. Perloff, James A. Brander

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Question Posted: Sep 19, 2013 04:16 AM

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A firms inverse demand function is p=400-4Q, C=500+200Q a) Find the profit-maximizing outputs under competitive and monopoly

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a We can compute total revenue as pQ Total cost 500200Q Note the form fixed variable which is in per unit terms Profits 4004Q Q 500200Q 200Q4Q2 500 Si...View the full answer

Managerial Economics And Strategy

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