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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?


Screen Shot 2019-08-06 at 12.30.16 PM.png

Screen Shot 2019-08-06 at 12.30.16 PM.png

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

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