For parts a and b) Suppose demand for my product is given by: P = 1000 - 0.6Q if my rivals react to my price change and P = 500 - 0.1Q if my rivals do not react to my price change. a) What level of output corresponds to the kink in my demand curve? b) If my marginal costs increased from 150 to 250 would I change my price and output? c)What is the difference between economic regulation and social regulation?
For parts a and b) Suppose demand for my product is given by: P = 1000 - 0.6Q if my rivals react to my price change and P = 500 - 0.1Q if my rivals do not react to my price change. a) What level of output corresponds to the kink in my demand curve? b) If my marginal costs increased from 150 to 250 would I change my price and output? c)What is the difference between economic regulation and social regulation?
Chapter14: Monopoly
Section: Chapter Questions
Problem 14.7P
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For parts a and b) Suppose
a) What level of output corresponds to the kink in my demand curve?
b) If my marginal costs increased from 150 to 250 would I change my price and output?
c)What is the difference between economic regulation and social regulation?
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