#6. Your company sells widgets. There is only one other firm in the market: Bear Widgets.Demand for your product depends upon your price, your quantity, and the price that BearWidgets charges (Pzear). You think that Bear Widgets will either charge $10 or $20. Whatshould you do if their price will be $10?Demand: P = 50 – Q + 0.5PgearMarginal costs: MC = 2Qa. Produce Q = 20b. Produce Q = 18.33c. Produce Q = 16.67d. Produce Q = 15e. Produce Q = 13.75

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#6. Your company sells widgets. There is only one other firm in the market: Bear Widgets. Demand for your product depends upon your price, your quantity, and the price that Bear Widgets charges (Psear). You think that Bear Widgets will either charge $10 or $20. What should you do if their price will be $10? Demand: P = 50 – Q + 0.5Pgear Marginal costs: MC = 2Q %3D a. Produce Q = 20 b. Produce Q = 18.33 c. Produce Q = 16.67 d. Produce Q = 15 e. Produce Q = 13.75

#6. Your company sells widgets. There is only one other firm in the market: Bear Widgets. Demand for your product depends upon your price, your quantity, and the price that Bear Widgets charges (Psear). You think that Bear Widgets will either charge $10 or $20. What should you do if their price will be $10? Demand: P = 50 – Q + 0.5Pgear Marginal costs: MC = 2Q %3D a. Produce Q = 20 b. Produce Q = 18.33 c. Produce Q = 16.67 d. Produce Q = 15 e. Produce Q = 13.75

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter14: Monopolistic Competition And Product Differentiation

Section: Chapter Questions

Problem 15P

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