The daily demand of two firms Firm 1 and Firm 2 producing two products is given by : D1 = 5 - 22P1 + 11P2 D2 = 50 - 22P1 + 11P2 These are the only firms producing the products. MC of Firm 1 is $0.5 per product and MC of Firm 2 is $2 per product. Q1. Calculate the equilibrium quantity and price of both the firms. You may assume that firms want to maximise the profits. Q2.Calculate producer surplus and deadweight loss.
The daily demand of two firms Firm 1 and Firm 2 producing two products is given by : D1 = 5 - 22P1 + 11P2 D2 = 50 - 22P1 + 11P2 These are the only firms producing the products. MC of Firm 1 is $0.5 per product and MC of Firm 2 is $2 per product. Q1. Calculate the equilibrium quantity and price of both the firms. You may assume that firms want to maximise the profits. Q2.Calculate producer surplus and deadweight loss.
Chapter3: Supply And Demand: Theory
Section: Chapter Questions
Problem 8WNG
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The daily demand of two firms Firm 1 and Firm 2 producing two products is given by :
D1 = 5 - 22P1 + 11P2
D2 = 50 - 22P1 + 11P2
These are the only firms producing the products. MC of Firm 1 is $0.5 per product and MC of Firm 2 is $2 per product.
Q1. Calculate the equilibrium quantity and price of both the firms. You may assume that firms want to maximise the profits.
Q2.Calculate producer surplus and deadweight loss .
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