6d761a8ca11ad7fc9e8b419380539d1e_6066f02b6624e5748db0a1f7f3b4c1cc - 1.:QD ==(q)=722(q2\/200istheFirm'stotalcostfunction. isgivenbyC(Q)=6q3q^2 q^3.

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1.Suppose you are given the following information about a particular industry: QD = 6500 100P is Market demand QS =1200P is Market supply C(q) = 722+ (q2)/200 is the Firm's total cost function. Suppose the long run total cost function  is given by C(Q)=6q-3q^2+q^3. What will the price be in long run equilibrium long run equilibrium in this industry? Is profit positive, negative, or zero? Explain. (note I think the wording of some the problem is an error) 2. A monopolist sells in two geographically divided markets, the east and the  west. Marginal cost is constant at \$50 in both markets( marginal cost is also  equal to average total cost). the invers demand curve in each market is as fol- lows: Pe=450-.5Qe Pw=700-Qw A) find the profit maximizing quantity, price and profit in each market. B) in which market is demand more elastic?

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