Question: Please show work for each step Third-Degree P.D.: Steps EX: P,=20-2Q, P2=15-Q, MC=Q To find the profit-max output for each group: 1. Start with functions

Please show work for each step

Third-Degree P.D.: Steps EX: P,=20-2Q, P2=15-Q, MC=Q To find the profit-max output for each group: 1. Start with functions MR, (Q,) and MR2(Q2) 2. Express each in inverse form: Q, (MR,) and Q2(MR2) 3 . Set MRT = MR, = MR, and sum the inverse forms: Q(MRT) = Q,(MRT) + Q2(MRT) 4. Reverse to get MR.(Q) 5 . Now set MRT = MC and solve for Q: this gives you QT 6. Find MCT(QT) {a number} 7. Set MR, (Q,) = MC, and solve for Q,, set MR2(Q2) = MCT and solve for Q2 8. Demand curve 1 provides P,, demand curve for 2 provides P2

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