Page 1 of 1
A company operating in a market of monopolistic competition has an inverse demand curve for its product: P=315-39, where
Posted: Thu May 19, 2022 7:36 am
by answerhappygod
- A Company Operating In A Market Of Monopolistic Competition Has An Inverse Demand Curve For Its Product P 315 39 Where 1 (76.47 KiB) Viewed 50 times
A
company operating in a market of monopolistic competition has an inverse demand curve for its product: P=315-39, where q is the number of units produced of the good and P its price. The total cost of production of this
company is given by: TC(q)=q2+75q+4000. a) To maximize profits, how many units of the good should you sell? b) What price should I charge? (C) What benefits would it reap? (d) Given the above information, how much would you have to reduce fixed costs for long- term equilibrium to occur? Represent graphically.