Answer to Question #116196 in Microeconomics for madhu

Question #116196
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:
q1 40 50 60 80 q2 50 70 100
SMC1 (Rs.) 8 10 12 16 SMC1 (Rs.) 4 6 9
SAC1 (Rs.) 13 12.3 12 13 SAC1 (Rs.) 7 6 7

Find mr1 when q1=40?
1
Expert's answer
2020-05-18T11:26:46-0400

We plot the dependency data. The thin line shows the dependencies for q1, and the thick line for q2.


"40+50=240-10p"


"p=15"


"TR=pQ=15\\times40=600"


"MR=MC"


"MC=S_{MC}Q"


"MR_1=8\\times40=320"


Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be the first!

Leave a comment

Ask Your question

LATEST TUTORIALS
New on Blog
APPROVED BY CLIENTS