- Only Point B C Please Uploaded Good Quality Pictures Of Solutions Provide Clear Explanation Of The Steps And Write Dow 1 (40.94 KiB) Viewed 42 times
only point B, C please uploaded good quality pictures of solutions, provide clear explanation of the steps and write dow
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only point B, C please uploaded good quality pictures of solutions, provide clear explanation of the steps and write dow
only point B, C please uploaded good quality pictures of solutions, provide clear explanation of the steps and write down every formula
1. Firm 1 is a member of a monopolistically competitive market. Its total cost function is The demand curve for the firm's differentiated product is given by C = 900+60Q+9Q₁². P=660-16Q₁. a. Determine the firm's profit maximizing output, price and profit. b. Attracted by potential profits, new firms enter the market. A typical firm's demand curve (say firm's 1) is given by P = [1,224 - 16(Q2 + Q3 + ... + QN) - 16Q1], where N is the total number of firms. The long-run equilibrium under monopolistic competition is claimed to consist of 10 firms, each producing 6 units at a price of $264. Is this claim correct? c. Based on the cost function given, what would be the outcome if the market were perfectly competitive? (Presume market demand is P = 1,224 - 16Q, where Q is total output.) Compare this outcome to the outcome in part b.
1. Firm 1 is a member of a monopolistically competitive market. Its total cost function is The demand curve for the firm's differentiated product is given by C = 900+60Q+9Q₁². P=660-16Q₁. a. Determine the firm's profit maximizing output, price and profit. b. Attracted by potential profits, new firms enter the market. A typical firm's demand curve (say firm's 1) is given by P = [1,224 - 16(Q2 + Q3 + ... + QN) - 16Q1], where N is the total number of firms. The long-run equilibrium under monopolistic competition is claimed to consist of 10 firms, each producing 6 units at a price of $264. Is this claim correct? c. Based on the cost function given, what would be the outcome if the market were perfectly competitive? (Presume market demand is P = 1,224 - 16Q, where Q is total output.) Compare this outcome to the outcome in part b.