Answer Happy

(b) Which of the following correctly represents the profit function of firm Argyle? (Hint: remember the difference between demand curve and inverse demand curve, and the relation between the two, from the lecture notes on "demand and consumer surplus". remember which one is needed to write the profit function.) Select one: O a. O b. O C. O d. O e. O f. O g. Oh. TA (210-2xA - 2TB)XB - 10xB TA = (210-2xB)A - 10xA TA (210-2xA - 2xB)TA - 10x A π = (210 2x₁)x₁ - 10xA TA (210-2xA)XB - 10xA TA (210-2x B) XA π = (210 2xA2XB) XA TA (210-2x A) TA

Consider an industry composed by two firms -- Argyle (A) and Blantyre (B) -- that sell a standardized product. They maximize their profits by choosing how much to produce. The total output of this industry (X) is the sum of the output of the two firms (X = XA+XB) Both firms have no fixed cost, and a constant marginal cost equal to . So the cost function is the same for the two firms, and equal to The demand function of consumers is as follows: Where p is the price of the product. X (a) What is the industrial structure of this sector? C₁ = 10 c(x) = 10x 210 - p 2 Not yet ans Points out Flag que