# Cost Function Variables

OTA Comments:

I need 3 pieces of information.

1) You are missing a crucial piece of information and that is the

market price or marginal revenue.

2) You have what appears to be a demand fxn. I don't know if it is a

market or firm demand function though.

Your cost fxn. is fine for this type of problem.

Please add this data and I can provide a nice explanation with a graph.

My response:

The problem I am trying to solve includes the following known variables:

P = 800 - 5Q and MC = 15Q. I am trying to understand how to determine price and quantity for a monopoly and a perfectly competitive firm and how to calculate economic profit for the monopoly.

Thank you

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#### Solution Summary

The expert examines cost function variables.

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