# calculate demand and price for two different demand functions that have the same cost function

I need to know how to calculate demand and price for two different demand functions that have the same cost function.

P1 = 20 - .0125Q1

P2 = 40 - .025Q2

ATC = MC = 3.00.

How do I calculate the price and quantity for each? How does ATC/MC factor into the price/quantity estimate?

What is the economic profit for each?

Thanks

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#### Solution Preview

For the first demand, the firm's total revenue is

TR = Q1*P1 = (20 - .0125Q1)*Q1 = 20 Q1 - .0125Q1^2

Then the Marginal revenue is

MR1 = dTR / dQ1 = 20 - .025Q1

we know that ...

#### Solution Summary

The economic profit for each is given. The different demand functions that have the same cost function is analyzed.

$2.49