Suppose the market demand and supply functions are Q_D = 2380 – 5P and Q_S = 12P + 1785. You have just graduated and moved to this city; as a new MBA and an entrepreneur, you are considering entering the market for this product.

b.   You’ve researched and found that most firms in the market currently experience costs such that TC = 260 + 75Q – 4Q² + 0.082Q³. Determine whether or not you should enter this market. Use graphs to support your answer

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Entering the Market A GraphBased Analysis Step 1 Analyze the Market Equilibrium Set demand and suppl... View the full answer