4. The demand equation for a product is p = a- bq and the cost function is C'(q) = kq² – rq where p is the price of the product, q is the quantity sold and a, b, k andr are positive constants. Find the equilibrium quantity in terms of a, b, k and r.

4. The demand equation for a product is p = a- bq and the cost function is C'(q) = kq² – rq where p is the price of the product, q is the quantity sold and a, b, k andr are positive constants. Find the equilibrium quantity in terms of a, b, k and r.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter6: Elasticities

Section: Chapter Questions

Problem 12P

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4. The demand equation for a product is p = a – bq and the cost function is C(q) = kq² – rq
where p is the price of the product, q is the quantity sold and a, b, k and r are positive
constants. Find the equilibrium quantity in terms of a, b, k and r.

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