Question
Due to asymmetrical responses to price changes, an oligopolist that faces a kinked demand curve. Demand for an increase in price is Q = 400
Due to asymmetrical responses to price changes, an oligopolist that faces a kinked demand curve.
Demand for an increase in price is Q = 400 - 40P and demand for a decrease in price is Q = 130 - 10P.
1. At what price and quantity the firm is currently operating? P*=$and Q*=
2. Over what range of marginal cost would the optimal price remain unchanged? Min MC=$& Max MC=$
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An Inquiry Into The Nature And Causes Of The Wealth Of Nations
Authors: Adam Smith, R H Campbell
1st Edition
0865970068, 9780865970069
