imperfectly competitive firm
Not what you're looking for?
1) An imperfectly competitive firm has the following demand and cost functions:
P=230-20Q
C=50+30Q
a. What is optimum output?
b. What is equilibrium price of this output per unit?
c. What is optimal revenue?
d. What is total profit?
2) A firm in a perfectly-competitive industry where market price of output prevailing is $50 per unit has a cost function where:
C=40+5Q2
a. What is marginal cost in dollars?
b. What is marginal revenue in dollars?
c. What is optimal output in units?
d. What is maximal profit?
3) A monopolist facing a demand curve and cost function like the following:
P=72-6Q
C=15+6Q2
a. has what equation for marginal revenue?
b. What is the equation for marginal cost?
c. What is optimal output?
d. What is price per unit?
What is profit?
Purchase this Solution
Solution Summary
Characterize an imperfectly competitive firm.
Solution Preview
<br>1) An imperfectly competitive firm has the following demand and cost functions:
<br>P=230-20Q
<br>C=50+30Q
<br>
<br>a. What is optimum output?
<br>b. What is equilibrium price of this output per unit?
<br>c. What is optimal revenue?
<br>d. What is total profit?
<br>
<br>For optimum in an imperfectly competitive firm, MR = MC
<br>
<br>Total Revenue = TR = Price * Quantity = P*Q
<br> = (230-20Q)*Q = 230Q - 20Q^2
<br>MR = d(TR)/dQ = d(230Q - 20Q^2)/dQ = 230 - 40Q
<br>MC = dC/dQ = 30
<br>MR = MC ==> 230-40Q = 30 ==> ...
Purchase this Solution
Free BrainMass Quizzes
Elementary Microeconomics
This quiz reviews the basic concept of supply and demand analysis.
Economics, Basic Concepts, Demand-Supply-Equilibrium
The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.
Basics of Economics
Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.
Economic Issues and Concepts
This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.
Pricing Strategies
Discussion about various pricing techniques of profit-seeking firms.