Answer to Question #70356 in Microeconomics for Ryan

Question #70356
Ben has individual demand curve P = 8 - Q, while Ana has individual demand curve P = 8 - 0.5Q. If they are the only two in the market, find the market demand curve as P = A - BQ. What is A? What is B?
1
Expert's answer
2017-10-02T11:51:07-0400
Explicit costs are:
$6,000+$2,000+$1,500+$500=$10,000
Implicit costs are:
$15,000+0.1*($6,000+$2,000+$500) = $15,850
Total economic costs:
$10,000+$15,850=$25,850

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