Question 2. An imperfectly competitive firm has the following demand curve: Q = 100 - 2P,...
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Question 2. An imperfectly competitive firm has the following demand curve: Q = 100 - 2P, and the following cost curve TC (Q) = 100+ 4Q, where Q refers to quantity produced and sold by the firm, and P refers to the price charge by the firm. (a) What is total revenue equal to when P = 40? (b) What is marginal revenue equal to when P = 40? (c) What is marginal cost equal to when Q = 10? (d) If the firm wishes to maximize profits, what price should it charge and how many units should it produce? Question 2. An imperfectly competitive firm has the following demand curve: Q = 100 - 2P, and the following cost curve TC (Q) = 100+ 4Q, where Q refers to quantity produced and sold by the firm, and P refers to the price charge by the firm. (a) What is total revenue equal to when P = 40? (b) What is marginal revenue equal to when P = 40? (c) What is marginal cost equal to when Q = 10? (d) If the firm wishes to maximize profits, what price should it charge and how many units should it produce?
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mperfectly Competitive Firm Analysis a Total Revenue at P 40 Substitute P 40 in the demand curve Q 1... View the full answer
Related Book For
Managerial Economics
ISBN: 978-0133020267
7th edition
Authors: Paul Keat, Philip K Young, Steve Erfle
Posted Date:
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