<Lecture 28> Review: Study Questions ** Suppose that an industry is characterized as follows: Total Cost: C = 10Q, Industry Demand: Q = 30 – P 1. Find the marginal cost and the marginal revenue. 2. Find the equilibrium price, quantity, and the consumer surplus if the industry is competitive. 3. If there is only one firm in the industry, find the monopoly price, quantity, and the consumer surplus. ** Suppose that there are two firms in the industry. 4. Use the Cournot model to find each firm's reaction function. 5. Find the Cournot equilibrium price, quantity, and the consumer surplus.
This is the end of the preview. Sign up
access the rest of the document.