Purchase Solution

maximize profit

Not what you're looking for?

Ask Custom Question

There are only two firms in the widget industry. The total demand for widgets is Q = 30 - 2P. The two firms have identical cost functions:

TC = 3 + 10Q. The two firms agree to collude and act as though the industry were a monopoly. At what price and quantity will this cartel maximize profit?

Purchase this Solution

Solution Summary

The point to maximize profit is noted.

Solution Preview

Q = 30-2P; TC = 3+10Q

TC = 3+10*(30-2P) = 303 - 20P
Total ...

Purchase this Solution


Free BrainMass Quizzes
Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

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.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.