Hi,

Can you provide support on the questions below, or at least the economic profit question?

Thanks!

Pitt Pit sells in two geographically divided markets, the East and the West. Marginal cost is constant at $50 in both markets. Demand and marginal revenue in each market are as follows:

QEast= 900 - 2*PEast

MREast= 450 - QEast

QWest= 700 - PWest

MRWest= 700 - 2*QWest

What is the economic profit in each market?

In which market is demand more elastic? Explain your reasoning.

Graph your results. (Either by Excel or by hand.) Upload an image (photograph of a hand drawn graph is okay) of your work.

UploadChoose a File

In the textbook, The Applied Theory of Price, D. N. McCloskey refers to the equation MR = MC as the rule of rational life. What types of firms follow this rule? (Pick which one of the following four choices that you think best answers this question.)

Group of answer choices

a) Only competitive firms follow this rule.

b) Only monopolies follow this rule.

c) All types of firms follow this rule.

d) The decision of whether to follow this rule depends on the shape of a firm's cost curves.