Sunday

April 20, 2014

April 20, 2014

Posted by **John** on Tuesday, May 3, 2011 at 1:54pm.

P = 165 - 0.025Q

MR = 165 - 0.05Q

Firm 1: TC = 4,000 + 15Q

Firm 2: TC = 3,000 + 22Q

a. Assuming that both firms are profit-maximizers, compute the output that each firm should produce.

b. Compute the price that each firm should charge at their respective output levels you computed above.

c. Compute the economic profit or loss of each firm at their respective output levels.

d. Suppose these firms operate in monopolistically competitive market. What will happen to economic profit or loss in the long run? Please briefly explain your answer.

**Related Questions**

managerial economicsQ3 - Suppose the inverse market demand equation is P = 80 ¡V...

Economics/Algebra - A monopolist has a constant marginal and average cost of $10...

college/microeconomics - Just needing to know if I have done the work correctly ...

Microeconomics: - Just needing to know if I have done the work correctly with ...

Economics/Algebra - Airline pricing is a good example of price discrimination. ...

Economics/Math - Airline pricing is a good example of price discrimination. ...

Maths - Demand function P=50-Q Average Cost 5Q + 40 +10/Q Calculate the firm's ...

Business Calculus - A company has operating costs of $2000 per thousand items ...

Microeconomics - Monopolistic Competition A monopolistically competitive market ...

To: Economyst - Can you please help? - Airline pricing is a good example of ...