View the step-by-step solution to:

Question

The table above shows a split market with two demand curves. D1=8-Q and D2=14-1.5Q. The firm has a consistent

marginal cost of \$2 and fixed costs of \$10. What is the profit maximizing quantity?

A
TC
MC
TRI
TR3
MR
8.00 14.00
10.00
0.00
0.00
7.00 12.50
12.00
2.00
7.00
12.50
6.00
11.00
6.00
11.00
14.00
2.00
12.00
22.00
4.00
8.00
5.00
9.50
16.00
2.00
15.00
28.50
2.00
5.00
4.00
8.00
18.00
2.00
16.00
32.00
0.00
2.00
5
3.00
6.50
20.00
2.00
15.00
32.50
-2.00
-1.00
6
2.00
5.00
22.00
2.00
12.00
30.00
4.00
4.00
1.00
3.50
24.00
2.00
7.00
24.50
6.00
-7.00
8 0.00 2.00
26.00 2.00
0.00
16.00
8.00
-10.00
Question 11.
The table above shows a split market with two demand curves: D, = 8 - Q and D. = 14 - 1.5Q. The firm
has a consistent marginal cost of \$2 and fixed costs of \$10. What is the profit-maximizing quantity?
a) 0
b) 1
c) 2
d) 3
e) 4
F) 5
g) 6
h) 7
8
i) None of the above
k) Impossible to know

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

-

Educational Resources
• -

Study Documents

Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

Browse Documents