Purchase Solution

Equilibrium Price and Output Calculation

Not what you're looking for?

Ask Custom Question

Suppose p = 20 - 2q and MR=20-4q is the market demand function for a local monopoly. the marginal cost is 2 q. the local monopoly tries to maximize its profits by equating mc = mr and charging a uniform price. what will be the equilibrium price and output? A) $6.33, 3.33 units; b) $6.33, 5 units; c) $13.33, 3.33 units; d) $10, 5 units.

Purchase this Solution

Solution Summary

This solution contains step-by-step calculations to determine variable number of units at different equilibrium prices.

Solution Preview

Answer: c) $13.33, 3.33 units

Explanation

It is given that,
MR = 20 - 4Q
MC = 2Q
For ...

Purchase this Solution


Free BrainMass Quizzes
Situational Leadership

This quiz will help you better understand Situational Leadership and its theories.

Marketing Management Philosophies Quiz

A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.

Accounting: Statement of Cash flows

This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.

Business Processes

This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.

Marketing Research and Forecasting

The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.