The market demand for a month's supply of a generic medicine is:Q = 400-0.5P.The demand can be rewritten as P= 800-2Q, so that the marginal revenue is MR = 800-4Q. The marginal cost (MC) and average total cost (ATC) are constant, and both equal $40. Consequently, the supply curve isP=MC = $40.Suppose that the firms' managers compete.The quantity produced by them will be ☐ units.The price of the product will be $The total economic profit made by all of the firms combined will be $

Answered: The market demand for a month's supply…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The Broadway show Hamilton is coming to perform for one night. There are two types of consumers interested in the show- current students and rich alumni. The demand curve for the student market is Q= 300-0.4P with marginal revenue MR= 750-5Q. The demand curve for the alumni market segment is Q=600-0.1P with marginal revenue MR=6000-20Q. If the two types of consumers are in the market, the MR=1800-4Q. The cost function is C(Q)=200Q and the marginal cost of serving either customer is MC=200. 2. How much total consumer surplus is generated?
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