Determine the firm price-output and profits

Reference no: EM13696720

You are the manager of a monopolistically competitive firm. Your demand function is: p=25-Q, and your cost function is : TC=5Q. Respectively MR=25-2Q and MC=5.

1) What is MR for Q=8? What is MC for Q=6?

2) Determine the firm price, output and profits. Explain.

3) What will happen in the market in the long run? Explain

Reference no: EM13696720

Questions Cloud

What were its profit maximizing quantity and price : When the iPad was introduced, Apple’s, Apples constant marginal cost of producing this iPad was about $220. We estimate that Apple’s inverse demand function for the iPad was P= 770 – 11Q, where Q is millions of iPad purchased. What were its profit ma..

The jury in the medtrans deloitte lawsuit ruled : The jury in the MedTrans v. Deloitte lawsuit ruled that the accounting firm negligently resigned from the 1992 audit, breached its contract with the client, and made defamatory statements regarding MedTrans' former executives during the predece..

Competitive market is initially in long-run equilibrium : "Assume a perfectly competitive market is initially in long-run equilibrium. In the short run, a decrease in raw materials prices will cause the firm's average costs to ________. As a result, the profits of existing firms will ________.

A local partnership is considering possible liquidation : A local partnership is considering possible liquidation because one of the partners (Bell) is insolvent. Capital balances at the current time are as follows. Profits and losses are divided on a 4:3:2:1 basis, respectively.

Determine the firm price-output and profits : You are the manager of a monopolistically competitive firm. Your demand function is: p=25-Q, and your cost function is : TC=5Q. Respectively MR=25-2Q and MC=5. Determine the firm price, output and profits. Explain. What will happen in the market in t..

Fine equilibrium price and quantity : The total marginal cost functions of a competitive firm are tv+1800+2q^2 and mc=4q, where tv and mc are total cost respectively, and q is the firms total output. There are currently 100 identical firms. The demand function is p=180-.02q. P is price, ..

Preferences reveal about asset bubbles and crashes : An individual has the following preferences over lotteries: L2 > L1, where L1 = (-50, 1) (i.e. lose with 50 with certainty), and L2 = (0, 5; -100, 5). What insight do these preferences reveal about asset bubbles and crashes (such as a housing price c..

Compute randolph company''s current income tax expense : Compute Randolph Company's current income tax expense.

Demand and total cost equations : A firm in an oligopolistic industry has the following demand and total cost equations: price and quantity at which revenue is maximized, using the total revenue function with first order condition and verifying your choice of Q resulting at a maximum..

User Account

All Pages