Question

In: Economics

1. Consider a firm withT C(Q) = 2Q^2 A) This firm is in a competitive market....

1. Consider a firm withT C(Q) = 2Q^2

A) This firm is in a competitive market. Find the firms equilibrium quantity and profit as a function of price

B) There are 16 identical firms. Demand is given by QD= 40−P. Find the equilibrium price and quantity for the market. Find the equilibrium profit for each firm.

C) Consider a single firm which controls all of the 10 firms in the market.This firm has TC(Q) = 16∗2∗(Q16)2 since it can separate its production among its 16 subsidiaries. This firm behaves as a monopoly. Find its profit as a function of quantity.

D) Find the market equilibrium price, quantity, and profit for the monopoly firm.

Solutions

Expert Solution

Rahul Sunny answered 2 years ago
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