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upstairsatomLv1
22 Mar 2021
Problem II. Suppose the inverse demand function for a monopolistically competitive firm’s product is given by P = 100 - 2Q and the cost function is given by TC=52 + 4Q.
1. Determine the profit-maximizing price and quantity.
2. Determine the maximum profits.
3. Can we say that this firm is operating in the long-run or short-run equilibrium at the equilibrium price and quantity?
Problem II. Suppose the inverse demand function for a monopolistically competitive firm’s product is given by P = 100 - 2Q and the cost function is given by TC=52 + 4Q.
1. Determine the profit-maximizing price and quantity.
2. Determine the maximum profits.
3. Can we say that this firm is operating in the long-run or short-run equilibrium at the equilibrium price and quantity?
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19 Apr 2023
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2 Jun 2021
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