There is a monopolist, ConcreteMex, in the concretemarket in Mexico. The demand function is QD= 100–50p. The marginal cost of production is c=0.4. Suppose ConcreteMex wants to enter a different market, the competitive market in Texas. To enter the market, ConcreteMex needs to pay a fixed cost of F=1, and its variable cost in Texas is VC=(0.4+Q)Q. What is ConcreteMex’s total cost, marginal cost,and average total cost in Texas at production level Q?

There is a monopolist, ConcreteMex, in the concretemarket in Mexico. The demand function is QD= 100–50p. The marginal cost of production is c=0.4. Suppose ConcreteMex wants to enter a different market, the competitive market in Texas. To enter the market, ConcreteMex needs to pay a fixed cost of F=1, and its variable cost in Texas is VC=(0.4+Q)Q. What is ConcreteMex’s total cost, marginal cost,and average total cost in Texas at production level Q?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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