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Titan Inc produces steel sheets, and its manager believes that the company to be the price leader of the industry. The demand curve for the whole = 100 2P and the supply curve for the small firms steel market is Q. d  in the market is Q. S produce daily, and P is the price charged per sheet. 5 + 4P. Where Q is the number of sheets to (a) If Titan's total cost is C = 80+ 0.75Q, at what level should Titan operate to maximize its profits? [10 marks] (b) What price should Titan charge? [2 marks] (c) What is the total output of the industry? Titan Inc produces steel sheets, and its manager believes that the company to be the price leader of the industry. The demand curve for the whole = 100 2P and the supply curve for the small firms steel market is Q. d  in the market is Q. S produce daily, and P is the price charged per sheet. 5 + 4P. Where Q is the number of sheets to (a) If Titan's total cost is C = 80+ 0.75Q, at what level should Titan operate to maximize its profits? [10 marks] (b) What price should Titan charge? [2 marks] (c) What is the total output of the industry?
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a To maximize profits Titan Inc should operate at the level where marginal cost MC equals marginal r... View the full answer
Related Book For
Microeconomics An Intuitive Approach with Calculus
ISBN: 9780538453257
1st edition
Authors: Thomas Nechyba
Posted Date:
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