Only typed answer You’ve been given a firm’s production and cost functions:   p = 132 − 2q MC = 12 + 4q   Assume this firm is in a perfectly competitive market. Calculate the equilibrium price and quantity. What is the firm’s profit here?   Assume this firm is in a monopoly market. Calculate the equilibrium price and quantity. What is the firm’s profit here?

Microeconomic Theory
12th Edition
ISBN:9781337517942
Author:NICHOLSON
Publisher:NICHOLSON
Chapter12: The Partial Equilibrium Competitive Model
Section: Chapter Questions
Problem 12.9P
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You’ve been given a firm’s production and cost functions:

 

p = 132 − 2q MC = 12 + 4q

 

Assume this firm is in a perfectly competitive market. Calculate the equilibrium price and quantity. What is the firm’s profit here?

 

Assume this firm is in a monopoly market. Calculate the equilibrium price and quantity. What is the firm’s profit here?

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