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. ●

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

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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