HW #2 - 12 14 10 20 30 Quantity MB MC Linear (MC) Linear...

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Edwina Regina AEM 250 HW #2 1a. b. P Qc1 Qc2 Qc 0 20 10 30 0.5 18 9 27 1 16 8 24 1.5 14 7 21 2 12 6 18 2.5 10 5 15 3 8 4 12 3.5 6 3 9 4 4 2 6 4.5 2 1 3 5 0 0 0 c. Q C1 = 20 – 4*P Q C2 = 10 - 2*P + ---------------------- Qc = 30- 2*P d. Marginal benefit function: P = -Q/6 + 5 2a and b P Qs1 Qs2 Qs 0 0 0 0 0.5 0.5 1.5 2 1 1 3 4 1.5 1.5 4.5 6 2 2 6 8 2.5 2.5 7.5 10 3 3 9 12 3.5 3.5 10.5 14 4 4 12 16 4.5 4.5 13.5 18 5 5 15 20 c. Qs = 4P d. Marginal cost function: P=Q/4
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3a. Market equilibrium is when MB=MC 10 – Q/3 = Q/2 Q=12 P= 12/2 = 6 MB = MC 0 2 4 6 8 10
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Unformatted text preview: 12 14 10 20 30 Quantity MB MC Linear (MC) Linear (MB) MB = MC 2 4 6 8 10 12 14 10 20 30 Quantity MB MC Linear (MC) Linear (MB) MB = MC 2 4 6 8 10 12 14 10 20 30 Quantity MB MC Linear (MC) Linear (MB) MB = MC 2 4 6 8 10 12 14 10 20 30 Quantity MB MC Linear (MC) Linear (MB)...
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HW #2 - 12 14 10 20 30 Quantity MB MC Linear (MC) Linear...

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