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Unformatted text preview: 2 Marginals and such 1. Give a rms revenue function if demand for its product is given by p = 10-q . 2. What is this rms marginal revenue? 1 3. Suppose a rms cost function is C = 2 Q 2 . What is its marginal costs, MC ? What is its average cost, AC ? 4. Suppose a rms cost function is C = 10 Q . What is its marginal costs, MC ? What is its average cost, AC ? 3 Monopoly Consider the following market demand: P = 24-Q . The cost of producing the good is given by C = Q 2 . Calculate output, price, consumer surplus, prot and deadweight loss, if the market is supplied by a monopolist. 2...
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This note was uploaded on 03/29/2009 for the course ECON 460 taught by Professor Boyer during the Spring '08 term at Michigan State University.
- Spring '08