2. A firm is considering entering a market where demand for its product is Q=100-2P. The...

 

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2. A firm is considering entering a market where demand for its product is Q=100-2P. The firm's total cost of producing the product for that market is TC = 500-10Q+Q². Indicate whether or not the firm should enter the market by calculating the firm's profit (Hint: to find the price that the firm should charge, take the profit maximizing quantity and plug it into the demand equation). (6%) Describe how your previous answer would change if the firm's total cost function became (b) TC= 500 + 10Q+Q². (4%) 2. A firm is considering entering a market where demand for its product is Q=100-2P. The firm's total cost of producing the product for that market is TC = 500-10Q+Q². Indicate whether or not the firm should enter the market by calculating the firm's profit (Hint: to find the price that the firm should charge, take the profit maximizing quantity and plug it into the demand equation). (6%) Describe how your previous answer would change if the firm's total cost function became (b) TC= 500 + 10Q+Q². (4%)

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Q1002P IS DEMAND FUNCTION TOTAL COST FUNCTION IS TC50010QQ2 A WHETHER OR NOT THE FIRM SHOULD ENTER T... View the full answer