Consider a monopolistically competitive market with NN firms. Each firm's business opportunities are described by the following equations: Demand: Q=100N−PQ=100N−P Marginal Revenue: MR=100N−2QMR=100N−2Q Total Cost: TC=50+Q2TC=50+Q2 Marginal Cost: MC=2QMC=2Q How much profit does each firm make? a: 1,250/N*2−50 b: 2,500/N*2−50 c: 50+625/N*2 d: 1,875/N*2 In the long run, how many firms will exist in this market?
Consider a monopolistically competitive market with NN firms. Each firm's business opportunities are described by the following equations: Demand: Q=100N−PQ=100N−P Marginal Revenue: MR=100N−2QMR=100N−2Q Total Cost: TC=50+Q2TC=50+Q2 Marginal Cost: MC=2QMC=2Q How much profit does each firm make? a: 1,250/N*2−50 b: 2,500/N*2−50 c: 50+625/N*2 d: 1,875/N*2 In the long run, how many firms will exist in this market?
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter3: Introduction To Optimization Modeling
Section: Chapter Questions
Problem 52P
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Consider a monopolistically competitive market with NN firms. Each firm's business opportunities are described by the following equations:
| Demand: | Q=100N−PQ=100N−P |
| Marginal Revenue: | MR=100N−2QMR=100N−2Q |
| Total Cost: | TC=50+Q2TC=50+Q2 |
| Marginal Cost: | MC=2QMC=2Q |
How much profit does each firm make?
a: 1,250/N*2−50
b: 2,500/N*2−50
c: 50+625/N*2
d: 1,875/N*2
In the long run, how many firms will exist in this market?
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