Hints_competition_monopoly_ch12,22-26

# Hints_competition_monopoly_ch12,22-26 - Chapter 12...

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Chapter 12 1) √(25,000,000) = 5000*0.9 + √(10000)* 0.1= 4500 + 10 =4510 4) 60*0.1 +80*0.9 = 6+72 = 78 6) 80 2 = 6400; 0.3*150 2 +0.7* 10 2 = 6750 + 70 = 6820 Competition 5) 2/y+y/2= y => y=2 or p=2 => 100 p MC=y/3=p => or y=3p =>240 p Total 340p 6) 3/y+4y/3 =8y/3 => y=3/2 => p 1 = 4 = MC 1 10/y +y/10 = 2y/10 => y= 10 => p 2 =2 7) y+4/y =2y => y= 2 => p= 4 D=50-4 = 46 8) y= 3 => p=6 ; VC=P 2 /4 = 9 9) Q+9/Q= 2Q => Q=3 so MC=P=6 Qd=114 and n = 38 Monopoly 6) 32q-5q 2 -7q = 25q-5q 2 8) MC=MR= P(1+1/E) = 60*3/4 =45 9) PQ= 1000 for p≤50 ; Q * = 1000/50=20

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Monopoly Again 7) P 1 (1+1/E 1 ) = P 2 (1+1/E 2 ) = (1-2/3)/ (1-1/2) = 2/3 8) Need Q1= 2Q2 P 1 =8-Q 1 /800; P 2 = 16- Q 2 /400 => 8-Q 1 /800 = 16- Q 2 /400 => 3200 – Q 1 = 6400 – 2Q 2 => 2Q2- Q1= 3200 = 800 (P 2 -P 1 ) P2-P1 = 4
Chapter 22- 26 In this solution sheet hints are given to some selected problems from the practice problem sets. 6) MC

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## This note was uploaded on 05/08/2011 for the course ECON 302 taught by Professor Avrin-rad during the Spring '09 term at University of Illinois, Urbana Champaign.

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Hints_competition_monopoly_ch12,22-26 - Chapter 12...

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