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Suppose that an industry is characterized as follows: C  100  2q2 each firm’s total cost function MC  4q firm’s marginal cost function P  90  2Q industry demand curve MR  90  4Q industry marginal revenue curve a. If there is only one firm in the industry, find the monopoly price, quantity, and level of profit. b. Find the price, quantity, and level of profit if the firm charges the competitive price. c. Graphically illustrate the demand curve, marginal revenue curve, marginal cost curve, and average cost curve. Identify the difference between the profit level of part a and part b in two different ways. (optional) Verify that the two are numerically equivalent.

User Darry
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Suppose that an industry is characterized as follows: C  100  2q2 each firm’s total-example-1
Suppose that an industry is characterized as follows: C  100  2q2 each firm’s total-example-2
User Stackular
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