MODULE IV : MARKET STRUCTURES
Assume that two identical firms in a purely oligopolistic industry selling a homogenous product agree to share the maket equally. The total market demand function for the commodity is Qd = 240 – 10P. The cost schedules of the firms are given in the following table:
Question 1: Profits for this firm will be:
a. Rs. 420
b. Rs. 130 (wrong)
c. Rs. 350
d. Rs. 450
Question 2: When q1 = 40, What will be MR1?
Question 3: When q1 = 40, what will be the profit maximising output for the first firm?
Question 4: When q1 = 50, what will be MR1?
Question 5: When q1 = 60, what will be MR1?
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