Question
Assume the following inverted demand function of a firm in the short run: P(x) = 43 - .32x Derive the MR function from this demand
Assume the following inverted demand function of a firm in the short run: P(x) = 43 - .32x
Derive the MR function from this demand function.
The TC function is: TC (x) = 2500 + 3x + .08x2
which yields the MC function as MC(x) = 3 +.16x
(a). What is the equilibrium price? What is the equilibrium quantity. (Show your work)
(b). What is the short run profit or loss of this firm? (Show your work).
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The Economics of Public Issues
Authors: Roger LeRoy Miller, Daniel K. Benjamin, Douglass C. North
19th edition
134018974, 134018973, 9780134020532 , 978-0134018973
