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    Cost Function Variables

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    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.