Consider a market with only one firm and total barriers to entry in which the demand curve is given by P = 80 - 2Q and MR = 80 - 4Q. Suppose that total costs is equal to 0). What would be the prevailing price in this market? P = 20 P = 50 P = 30

Consider a market with only one firm and total barriers to entry in which the demand curve is given by P = 80 - 2Q and MR = 80 - 4Q. Suppose that total costs is equal to 0). What would be the prevailing price in this market? P = 20 P = 50 P = 30

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Consider a market with only one firm and total barriers to entry in which the demand curve is given by P = 80 – 2Q and MR = 80 – 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?
P = 20
P = 50
P = 30
P = 40

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