Question #264695

Consider a monopolistic competitor who has the following demand function p=140-4Q.In additionsuppose that his total cost function is given Tc=10+5Q2 . Find his equilibrium price and quantity


1
Expert's answer
2021-11-14T17:00:44-0500

demand function p=140-4Q

total cost function is given Tc=10+5Q


MR== MC;

MC=10Q;=10Q;

MR=((1404Q)×Q)=(140Q4Q2)=1408Q;MR=((140-4Q)×Q )'=(140Q-4Q^2)'=140-8Q;

10Q=1408Q;18Q=140;10Q=140-8Q; 18Q=140;

Q=Q= 7.8;7.8;

P=1408×7.8;P=14031.2;P=140-8×7.8; P=140-31.2;

P=P= $108.8;108.8;



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