Task: monopoly. 1. The market demand for a good (say, Starfleet tricorders) has the market demand function of Q(P) = 100 - 2P. Fixed costs for a firm are 20 and variable costs are VC(Q) = 10Q. ™M • Plot the demand, supply, marginal revenue, marginal cost, and average total cost curves (labels!) • Is this a competitive market? How can you tell? What are the equilibrium quantity and price in this market? Indicate this on the graph. • What are the profits if there are any? Indicate the area on the graph if applicable. ●

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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Task: monopoly.
1. The market demand for a good (say, Starfleet tricorders) has the market demand
100 2P. Fixed costs for a firm are 20 and variable costs are
function of Q(P)
VC(Q) = 10Q.
=
TM
Plot the demand, supply, marginal revenue, marginal cost, and average total cost curves
(labels!)
• Is this a competitive market? How can you tell?
• What are the equilibrium quantity and price in this market? Indicate this on the graph.
• What are the profits if there are any? Indicate the area on the graph if applicable.
Transcribed Image Text:Task: monopoly. 1. The market demand for a good (say, Starfleet tricorders) has the market demand 100 2P. Fixed costs for a firm are 20 and variable costs are function of Q(P) VC(Q) = 10Q. = TM Plot the demand, supply, marginal revenue, marginal cost, and average total cost curves (labels!) • Is this a competitive market? How can you tell? • What are the equilibrium quantity and price in this market? Indicate this on the graph. • What are the profits if there are any? Indicate the area on the graph if applicable.
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