Calculate profit-maximizing level of price and output under

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Reference no: EM13454073

The industry demand function for bulk plastic is represented by the following equation:

P= 800 - 20Q

Where Q represents millions of pounds of plastic

The total cost function for the industry, exclusive of a required return on invested capital is

TC = 300 + 500Q + 10Q2

Where Q represents millions of pounds of plastic

a. If this industry acts like a monopolist in the determination of price and out-put compute the profit-maximizing level of price and output

b. Assume that this industry is composed of many (500) small firms, such that the demand function facing any individual firm is

P = $620

Compute the profit-maximizing level of price and output under these conditions (the industry's total cost function remains unchanged)

Reference no: EM13454073

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