Due to asymmetrical responses to price changes, an oligopolist that faces a kinked demand curve. Demand for an increase in price is Q = 400 - 40P and demand for a decrease in price is Q= 130 - 10P. 1. At what price and quantity the firm is currently operating? P"-2$ and Q*= 2. Over what range of marginal cost would the optimal price remain unchanged? Min MC-$ & Max MC=$

Due to asymmetrical responses to price changes, an oligopolist that faces a kinked demand curve. Demand for an increase in price is Q = 400 - 40P and demand for a decrease in price is Q= 130 - 10P. 1. At what price and quantity the firm is currently operating? P"-2$ and Q*= 2. Over what range of marginal cost would the optimal price remain unchanged? Min MC-$ & Max MC=$

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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