Below we the market demand for a good, and the total cost of producing various levels of quantities by the industry. This problem is a theoretical example of Cournot Competition, where firms choose quantities to produce, and end up selling at whatever price the market is willing to pay for the total industry output. For simplification purposes, firms have no fixed costs, and a constant MC and ATC.a. Complete the table. Quantity Price TR MR TC MC ATC Profit 0 $14 — 0 — — 10 $11 10 20 $8 20 30 $5 30 40 $2 40
Below we the market demand for a good, and the total cost of producing various levels of quantities by the industry. This problem is a theoretical example of Cournot Competition, where firms choose quantities to produce, and end up selling at whatever price the market is willing to pay for the total industry output. For simplification purposes, firms have no fixed costs, and a constant MC and ATC.a. Complete the table. Quantity Price TR MR TC MC ATC Profit 0 $14 — 0 — — 10 $11 10 20 $8 20 30 $5 30 40 $2 40
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
Below we the market demand for a good, and the total cost of producing various levels of quantities by the industry. This problem is a theoretical example of Cournot Competition, where firms choose quantities to produce, and end up selling at whatever
a. Complete the table.
|
Quantity |
Price |
TR |
MR |
TC |
MC |
ATC |
Profit |
|
0 |
$14 |
— |
0 |
— |
— |
||
|
10 |
$11 |
10 |
|||||
|
20 |
$8 |
20 |
|||||
|
30 |
$5 |
30 |
|||||
|
40 |
$2 |
40 |
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