rn Assume that a firm has a cost function with discrete values as given in the following

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Assume that a firm has a cost function with discrete values as given in the following table: 1 2 5 6 7 8 10 12 15 20 20 40 Q с Q AC MC 1 (i.) Determine the marginal and average costs for all possible quantities presented in the previous table. Insert your answer into the following table: * * 2 * 3 15 * 3 * 4 15 * 4 * * 5 * 6 * 7 * * 8 * 9 10 40 60 * 9 10 * * (ii.) Suppose that the firm has monopoly power in the market and that the market inverse demand is estimated as p =10 - Q. As manager of this firm, you are required to determine the optimal output level of production. What is your decision? Determine also the total profits given your decision. (iii.) Assume now that there are two firms in the market with the above cost structure, and that the market inverse demand is estimated as p =10 - Q. Determine what output and price level will emerge under Cournot competition? Assume that a firm has a cost function with discrete values as given in the following table: 1 2 5 6 7 8 10 12 15 20 20 40 Q с Q AC MC 1 (i.) Determine the marginal and average costs for all possible quantities presented in the previous table. Insert your answer into the following table: * * 2 * 3 15 * 3 * 4 15 * 4 * * 5 * 6 * 7 * * 8 * 9 10 40 60 * 9 10 * * (ii.) Suppose that the firm has monopoly power in the market and that the market inverse demand is estimated as p =10 - Q. As manager of this firm, you are required to determine the optimal output level of production. What is your decision? Determine also the total profits given your decision. (iii.) Assume now that there are two firms in the market with the above cost structure, and that the market inverse demand is estimated as p =10 - Q. Determine what output and price level will emerge under Cournot competition?

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Given Data Assume that a finm has a Cost function with disc... View the full answer