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    firm in an oligopolistic industry

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    A firm in an oligopolistic industry has the following demand and total cost equations

    P = 600 - 20Q

    TC = 700 + 160Q + 15Q squared

    Calculate:

    A. Quantity at which profit is maximized

    B. Maximum profit

    C. Quantity at which revenue is maximized

    D.Maximum revenue

    E. Maximum quantity at which profit will be at least $850

    F. Maximum revenue at which profit will be at least $580

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    https://brainmass.com/economics/applied-economics/firm-in-an-oligopolistic-industry-72283

    Solution Preview

    A firm in an oligopolistic industry has the following demand and total cost equations
    P = 600 - 20Q
    TC = 700 + 160Q + 15Q squared
    Calculate:

    A. Quantity at which profit is maximized
    The demand curve is P = 600 - 20Q
    then marginal revenue is MR = 600 - 40Q
    Marginal cost is MC = dTC / dQ = 160 + 30Q
    The first order condition for profit maximization is MR = MC, i.e.,
    600 - 40Q = 160 + 30Q
    70Q = ...

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