The market demand and supply functions for a type of carpet known as KP-7 have been estimated, respectively, as: QD = 160 – 6P, QS = – 100 + 20P. where P is the price (dollars per yard) and Q is the rate of sales (hundreds of yards per month). A typical firm in this market has a total cost function given as: TC = 100 – 22q + 2q2, where q is the firm’s output level. The optimal amount to produce for the typical firm is q =
The market demand and supply functions for a type of carpet known as KP-7 have been estimated, respectively, as: QD = 160 – 6P, QS = – 100 + 20P. where P is the price (dollars per yard) and Q is the rate of sales (hundreds of yards per month). A typical firm in this market has a total cost function given as: TC = 100 – 22q + 2q2, where q is the firm’s output level. The optimal amount to produce for the typical firm is q =
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter9: Applications Of Cost Theory
Section: Chapter Questions
Problem 3E
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The market demand and supply functions for a type of carpet known as KP-7 have been estimated, respectively, as:
QD = 160 – 6P,
QS = – 100 + 20P.
where P is the price (dollars per yard) and Q is the rate of sales (hundreds of yards per month).
A typical firm in this market has a total cost function given as:
TC = 100 – 22q + 2q2,
where q is the firm’s output level.
The optimal amount to produce for the typical firm is q =
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