Consider a market with only one firm and total barriers to entry in which the demand curve is given by P = 100 – 2Q and MR = 100 – 4Q. Suppose that total costs is equal to 0 (hence, marginal cost is equal to 0). What would be the prevailing price in this market?
Consider a market with only one firm and total barriers to entry in which the demand curve is given by P = 100 – 2Q and MR = 100 – 4Q. Suppose that total costs is equal to 0 (hence, marginal cost is equal to 0). What would be the prevailing price in this market?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question 21
Consider a market with only one firm and total barriers to entry in which the
P = 20 |
||
P = 30 |
||
P = 50 |
||
P = 40 |
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