3. Given the following, find Q'. P = 200 - 3Q MC = 3Q FC = 0

Question

Question

business economics

Answer 1

Answer #1

For a competitive firm P=MC

200-3Q=3Q

6Q=300

Q=50

For a monopoly/monopolistic firm MR=MC

TR=PQ

TR=200Q-3Q^2

MR=d(TR)/dQ

MR=200-6Q

At equilibrium:

200-6Q=3Q

9Q=200

Q=22.23

Q depends on the type of market.

Answer 2

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