Essay
You are the manager of a monopolistically competitive firm.The present demand curve you face is P = 100 - 4Q.Your cost function is C(Q)= 50 + 8.5Q2.
a.What level of output should you choose to maximize profits?
b.What price should you charge?
c.What will happen in your market in the long run?
Correct Answer:
Verified
a.Setting MR = MC yields Q = 4.
b.P = 10...View Answer
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Correct Answer:
Verified
b.P = 10...
View Answer
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