Consider the following model of a monopolistic form, where P is the sale price of the good, MC is marginal cost of producing the good and q is quantity produced (assumed equal to quantity sold) the firm has to sell all units of the good at the same price. p=10-2q MC=2+q If the firm produces 3 units, how much profit will it make? a. £3 b. £11.25 c. £1.50 d. £24
Consider the following model of a monopolistic form, where P is the sale price of the good, MC is marginal cost of producing the good and q is quantity produced (assumed equal to quantity sold) the firm has to sell all units of the good at the same price. p=10-2q MC=2+q If the firm produces 3 units, how much profit will it make? a. £3 b. £11.25 c. £1.50 d. £24
Chapter26: Monopolistic Competition And Oligopoly
Section: Chapter Questions
Problem 10E
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Question
Consider the following model of a monopolistic form, where P is the sale price of the good, MC is marginal cost of producing the good and q is quantity produced (assumed equal to quantity sold) the firm has to sell all units of the good at the same price.
p=10-2q
MC=2+q
If the firm produces 3 units, how much profit will it make?
a. £3
b. £11.25
c. £1.50
d. £24
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