The table below shows the monthly demand schedule for a good in a duopoly market. The two producers in this market each face $4700 of fixed costs per month. There are no marginal costs. Quantity 0 Price ($) TR ($) MR ($) 40 0 - 200 35 7,000 35 400 30 12,000 25 600 25 15,000 15 800 20 16,000 5 1,000 15 15,000 -5 1,200 10 12,000 -15 1,400 5 7,000 -25 1,600 0 0 -35 Instructions: Enter your answers to the nearest whole number. a. If they evenly split the quantity a monopolist would produce, the monthly profit for each duopolist is b. If duopolist A decides to increase production by 200 units, the monthly profit for duopolist A is $ and for duopolist B $
The table below shows the monthly demand schedule for a good in a duopoly market. The two producers in this market each face $4700 of fixed costs per month. There are no marginal costs. Quantity 0 Price ($) TR ($) MR ($) 40 0 - 200 35 7,000 35 400 30 12,000 25 600 25 15,000 15 800 20 16,000 5 1,000 15 15,000 -5 1,200 10 12,000 -15 1,400 5 7,000 -25 1,600 0 0 -35 Instructions: Enter your answers to the nearest whole number. a. If they evenly split the quantity a monopolist would produce, the monthly profit for each duopolist is b. If duopolist A decides to increase production by 200 units, the monthly profit for duopolist A is $ and for duopolist B $
Chapter23: Profit Maximization
Section: Chapter Questions
Problem 9E
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![The table below shows the monthly demand schedule for a good in a duopoly market. The two producers in this market each face
$4700 of fixed costs per month. There are no marginal costs.
Quantity
0
Price ($)
TR ($)
MR ($)
40
0
-
200
35
7,000
35
400
30
12,000
25
600
25
15,000
15
800
20
16,000
5
1,000
15
15,000
-5
1,200
10
12,000
-15
1,400
5
7,000
-25
1,600
0
0
-35
Instructions: Enter your answers to the nearest whole number.
a. If they evenly split the quantity a monopolist would produce, the monthly profit for each duopolist is
b. If duopolist A decides to increase production by 200 units, the monthly profit for duopolist A is $
and for duopolist B $](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9e225d99-1ef5-4de9-8ffe-cfd3987d1582%2Fa77fc242-3d97-4ee5-b564-53a2e0b65ac9%2Fev5m3fq_processed.png&w=3840&q=75)
Transcribed Image Text:The table below shows the monthly demand schedule for a good in a duopoly market. The two producers in this market each face
$4700 of fixed costs per month. There are no marginal costs.
Quantity
0
Price ($)
TR ($)
MR ($)
40
0
-
200
35
7,000
35
400
30
12,000
25
600
25
15,000
15
800
20
16,000
5
1,000
15
15,000
-5
1,200
10
12,000
-15
1,400
5
7,000
-25
1,600
0
0
-35
Instructions: Enter your answers to the nearest whole number.
a. If they evenly split the quantity a monopolist would produce, the monthly profit for each duopolist is
b. If duopolist A decides to increase production by 200 units, the monthly profit for duopolist A is $
and for duopolist B $
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