The demand function for price increases and for price cuts for an oligopolist are:Q, = 240 -- 30P,Q. =80 – 8PIts cost function is as followsTC=20 1Q20(i)(1i)(i)Derive the MR and MC functions facing the oligopolist.Determine the equilibrium price and output.Show that the equilibrium price is stable.

Marginal revenue is referred as the change in total revenue because of an extra unit of output sold…

The demand function for price increases and for price euts for an oligopolist are: Q = 240 - 30P, Q, = 80 8P, Its cost füunction is as follows TC 2Q +IQ 20 Derive the MR and MC functions facing the oligopolist. Determine the equilibrium price and output. Show that the equilibrium price is stable, (i) (11) (i1)

The demand function for price increases and for price euts for an oligopolist are: Q = 240 - 30P, Q, = 80 8P, Its cost füunction is as follows TC 2Q +IQ 20 Derive the MR and MC functions facing the oligopolist. Determine the equilibrium price and output. Show that the equilibrium price is stable, (i) (11) (i1)

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

100%

The demand function for price increases and for price cuts for an oligopolist are:
Q, = 240 -
- 30P,
Q. =
80 – 8P
Its cost function is as follows
TC=20 1Q
20
(i)
(1i)
(i)
Derive the MR and MC functions facing the oligopolist.
Determine the equilibrium price and output.
Show that the equilibrium price is stable.

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